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QUESTION 4) (25 pts) The figure below is taken from your textbook (page 174). After you read the FIGURE 5.1 Drivers of a firm's profitability
QUESTION 4) (25 pts) The figure below is taken from your textbook (page 174). After you read the FIGURE 5.1 Drivers of a firm's profitability and growth Growth and profitability Product market strategies Financial market policies Operating management Investment management Financing decisions Dividend policy Managing revenue and expenses Managing working capital and fixed assets Managing liabilities and equity Managing payout a) Which ratios can be used to understand whether management is successful in managing revenue and expenses ? Why ? (Provide at least two ratios) (5 pts, 100 words) b) Which ratios can be used to understand whether management is successful in managing working capital and fixed assets? Why ? (Provide at least two ratios) (5 pts, 100 words) c) Which ratios can be used to understand whether management is successful in managing working liabilities and equity? Why ? (Provide at least two ratios) (5 pts, 100 words) d) Why managing payouts is important? Which ratio can be used to assess the company's payouts? Discuss briefly (5 pts, 100 words) e) How can managing liabilities and equity help company to be profitable and grow? (5 pts, 100 words)
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