REQUIREMENTS -
You are a potential investor of Falcons Incorporated and was given the financial statements of the company for the year ended 2012 and 2013. Evaluate the financial status of the company in terms of its liquidity, solvency, structure and profitability. Use your comprehensive analysis to decide whether it would be a wise decision to invest in the company or not. You can make use of various tools in financial analysis such as horizontal (increase-decrease method), vertical (common size financial statement), and financial ratio analysis.
2. The company provides Preferred and Common Stocks to stockholders. Which among the two would be better to invest in? Discuss comprehensively the factors that you will consider in choosing the type of stock that you will invest in.