Question
Out of current ratio, quick ratio, debt-to-equity ratio, rate-earned-on-stockholders'-equity ratio, rate-earned-on-total-assets ratio: 1. Which ratio is most important to look at when potentially investing in
Out of current ratio, quick ratio, debt-to-equity ratio, rate-earned-on-stockholders'-equity ratio, rate-earned-on-total-assets ratio:
1. Which ratio is most important to look at when potentially investing in a company as a stockholder and why?
2. If you are a new supplier, which ratio would you be most interested in to decide to sell your merchandise? Why? Assume your terms for payment are 2/10; net/30.
3. Assume you are a banker and a corporation has met with you to borrow $100,000 and pay it back in three years. Which ratio would you be most interested in to decide to give them the loan? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started