Question: Calculate any four financial ratios of your choice from the company in 2014 (see exhibit 4) and explain how each financial ratio may help financial managers make optimal financial decisions.

CASE 1 FINANCIAL PLANNING TIME VALUE OF MONEY Ambrose Studebaker received his Ph.D in history from a well-known Ivy League school at the age of 22. By the time he was 30, Studebaker was one of the most widely respected historians in the country and had published over 20 ma- jor articles and three influential books. His success at teaching has been equally impressive. Studebaker is well known among students for his quick wit, fine sense of humor, demanding but fair standards, and clear and interesting lec- tures. A few years ago he became "extremely dissatisfied" with textbooks deal- ing with the history of Western civilization and promptly wrote his own. Not surprisingly, the book is now the leading seller in the field His present (1996) income from his salary at the university, book royalties, and fees from guest lectures is fairly substantial. Being a frugal sort, Studebaker has accumulated a sizable portfolio of stocks, bonds, money market funds, and some fine art. He has never been especially conscious of money but, nonetheless, is de- sirous of acting in a prudent manner with his savings. Studebaker rarely sought any professional financial advice, yet it is hard to criticize his investment philos- ophy, which is based on the principles of diversification and buy-and-hold ROBERT MORTON Robert Morton is president of R. G.D.Morton and Associates, a firm specializing in financial planning. Morton is licensed to sell insurance and securities and a few years ago obtained permission from the faculty welfare committee at Studebaker's university to solicit on campus. Morton had sent the faculty a memorandum "in- troducing a new financial product: equity transfer." (See Exhibit 1.) The basic idea was that individuals could borrow on the equity in their home and invest these funds plus any excess savings in a single-premium life insurance policy