Comprehensive problem Essay - Part 3

Question 6

a)

We will write a custom essay sample on
Comprehensive problem
specifically for you for only $13.9/page
Order now

More Essay Examples on Book Rubric

b) The Price Earnings Ratio is a performance indicator that shows the market’s confidence in a particular organization.  The higher the ratio the greater the assurance of investors that profits will grow strong in the nearby future.  Indeed the ratios calculate above complement such preposition.  During 1998 and 2000 the price earnings ratio increased in line with higher profitability and rising diluted earnings per share.

However in 2001 a drop of 50% arose in the firm’s profits adversely affecting the shareholder’s return from investment leading to a decreasing confidence in the corporation.

Question 7

a)

b) A drastic decrease in the price to book ratio, like what happened in 2001, may indicate that there is something wrong with the company.  Indeed when one looks at the financial statements of 2001 one can see decreasing profitability.

Reference:

Randall H - Comprehensive problem Essay introduction. (1999).  A Level Accounting.  Third Edition.  Great Britain:  Ashford Colour Press Ltd.

 

Choose Type of service

Choose writer quality

Page count

1 page 275 words

Deadline

Order Creative Sample Now

Haven’t Found A Paper?

Let us create the best one for you! What is your topic?

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.

Eric from Graduateway Hi there, would you like to get an essay? What is your topic? Let me help you

logo

Haven't found the Essay You Want?

Get your custom essay sample

For Only $13.90/page