1. What is the rational for maximization of stock- holder wealth as a goal of the firm? 2.Financial Statements and Ratio
Posted: Wed Jul 06, 2022 6:41 pm
1. What is the rational for maximization of stock- holder wealthas a goal of the firm?
2.Financial Statements and Ratio Analysis provide some usefulinformation about a company's operations and financialconditions.
They use current or past information.
What are the limitations, and what are some qualitative factorsthat should be considered when using this information?
"It is not uncommon for a company to report positive net incomeright up to the day it declares bankruptcy". How is thispossible?
2.Financial Statements and Ratio Analysis provide some usefulinformation about a company's operations and financialconditions.
They use current or past information.
What are the limitations, and what are some qualitative factorsthat should be considered when using this information?
"It is not uncommon for a company to report positive net incomeright up to the day it declares bankruptcy". How is thispossible?