1.Which ratios would a potential long-term bond investor be most interested in? Explain.
2.Under what circumstances would market to book value ratios be misleading? Explain.
3.Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain
4.Why are trend analysis and industry comparison important to financial ratio analysis?
5.Why do businesses spend time, effort, and money to produce forecasts? Explain.