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Question 5 a) Consider cach of the following situations independently of each other. For each of the situations provide ONE (1) example of when the

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Question 5 a) Consider cach of the following situations independently of each other. For each of the situations provide ONE (1) example of when the underlying circumstances may be such that the observed trend is unfavorable and ONE (1) example of when the underlying circumstances are favorable. () Current ratio incrcasos from onc period to the next. ii) Accounts receivable turnover increascs from onc pcriod to the next (4 marks) (b) i) List major determinants of PF ratio. (ii) How can analysts usc jointly the values of PB and PE ratios in assessing the mcrits of 4 marks) Why is return on invested capital one of the most relevant mcasurcs of company 4 marks) 4 marks) a particular share investment? (c) performance? How do we use this measure in our analysis of financial statements? (d) Why is analysis of a company's capital structure important? (c) Describe FOUR (4) calegories of financial analysis tools. (4 marks) Total 20 marks] 8

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