QUESTION FIVE

A. Suppose a financial services company was audited and it was found that the company was unable to meet its debt obligations. Which ratios would have used to reveal these findings? [4 Marks]

B. Annually, companies are required to publish their annual financial reports. List the three main statements reported and their importance. [6 Marks]

C. Company valuations are carried out to evaluate the value of a company. Briefly discuss the main valuation methods. [6 marks]

D. Briefly explain the purpose of the Common Size Analysis as it relates to company valuation. [4 marks]