Question: Different ratios are important to different groups of people depending upon their intended target audience.
1. When evaluating whether to purchase public stock, what ratio would you consider to be most important and WHY? (HINT: not to get ahead of ourselves, but there is a slide in the Ch. 10 Instructor Notes that may prove helpful.)
2. If you're a banker or lender, which ratio(s) would you consider to be most important and why?