Exam 13: Suggestions for Case Analysis

The case method provides the opportunity to move from a broader,less precise analysis of the overall corporation to a narrow,specialized view that emphasizes functional techniques.

The index of sustainable growth indicates how much of the growth rate of sales can be sustained by internally generated funds.

Inventory turnover and days of inventory are profitability ratios.

Key liquidity ratios include the current ratio,quick ratio,and cash ratio.

All of the following ratios are used in the calculation of a company's Z-value EXCEPT

The debt to asset ratio measures the extent to which borrowed funds have been used to finance the company's assets.

Unless instructed otherwise,you should not restrict yourself only to the information and timing of when the case was written and undertake outside research about the environmental setting.

Constant dollars are dollars adjusted for inflation to make them comparable over various years.

The Z-value uses ________ ratios and weights them according to their importance to a corporation's financial strength.

All of the following are true of annual reports EXCEPT

A typical financial analysis would compare the firm under study with industry standards.

What financial ratio serves as a short-term indicator of the company's ability to pay its short-term liabilities from its short-term assets?

Which financial indicator is calculated by the ratio of market price per share to earnings per share?

Among the most useful and important documents that can be used to understand why actions were taken are

According to the text,what information can be obtained by accessing the SEC website?

In performing a basic financial analysis,what five steps should be taken?

According to the text,what percentage of security analysts use annual reports when making decisions?

"Earnings per share" is an example of a(n)

At what Z-value level is a firm considered in serious trouble?

Which of the following is not true of case analysis?