1. Explain how the composition of a community bank’s investment portfolio might differ from the composition of a large bank’s portfolio.
2. What does it mean when a company has a negative Sustainable Growth rate? How could a company get itself into this situation? What Remedies can be used to fix this situation?
3. Panhandle Motors just reported EPS of $1.00. The average company in the industry has a P/E ratio of 15. What is Panhandle Motors' price according to the P/E multiple approach?