Distinguish between the types of bonds. What factors determine their value? Explain three important relationships that exist in bond valuation. There are many kinds of bonds, but five stick out.   Debentures are essentially long-term debt that’s sold as a …

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Discuss investor’s required rate of return, and how the riskiness of an asset is measured and interpreted. Assess how diversifying investments would affect the riskiness and expected rate of return of a portfolio or combination of assets. Discuss unsystematic risk, …

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Why might one firm have positive cash flows and be headed for financial trouble, whereas another firm with negative cash flows could actually be in a good financial position? One reason that a company could have positive cash flow but …

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What is the purpose and importance of financial analysis? What are financial ratios? Describe the “five-question approach” to using financial ratios.  What are the limitations of financial ratio analysis? If we divide users of ratios into short-term lenders, long-term lenders, …

What is the purpose and importance of financial analysis? What are financial ratios? Read more »

Purpose and importance of financial analysis What is the purpose and importance of financial analysis? What are financial ratios? Describe the “five-question approach” to using financial ratios.  What are the limitations of financial ratio analysis? If we divide users of …

What is the purpose and importance of financial analysis? Read more »