Question Three Complete: The Financial Advisor's Investment Case (Part 3) p.322 Mayo, H. B. Investments: An Introduction 13 edition INVESTMENT ASSIGNMENT (PART 3) In Part 1 you invested $10,000 in each of ten stocks and set up a watch account at a site such as Yahoo! Finance. Some of the sites provide the ratios illustrated in this chapter. This assignment asks you to determine if any of the stocks you selected meet any of the following ratio requirements: at least 1:1 minimum of 8% Current ratio Profit margin Return on assets Return on equity Long-term debt to total asse minimum of 10% 15% minimum not to exceed 40% (Most sources use long-term debt and not total liabilities. If you wish to use total li- abilities to compute the debt ratio, you may find that information on the firm's balance sheet.) Although these ratios do not indicate whether the stock is over- or undervalued (that is addressed in the next chapter), they can be a good place to start. For example, if the return on assets and the return on equity are negative, you might want to ask if you desire to own a stock that is operating at a loss. Question Three Complete: The Financial Advisor's Investment Case (Part 3) p.322 Mayo, H. B. Investments: An Introduction 13 edition INVESTMENT ASSIGNMENT (PART 3) In Part 1 you invested $10,000 in each of ten stocks and set up a watch account at a site such as Yahoo! Finance. Some of the sites provide the ratios illustrated in this chapter. This assignment asks you to determine if any of the stocks you selected meet any of the following ratio requirements: at least 1:1 minimum of 8% Current ratio Profit margin Return on assets Return on equity Long-term debt to total asse minimum of 10% 15% minimum not to exceed 40% (Most sources use long-term debt and not total liabilities. If you wish to use total li- abilities to compute the debt ratio, you may find that information on the firm's balance sheet.) Although these ratios do not indicate whether the stock is over- or undervalued (that is addressed in the next chapter), they can be a good place to start. For example, if the return on assets and the return on equity are negative, you might want to ask if you desire to own a stock that is operating at a loss