Q 1. Suppose that you have 1.5 million rupees to invest in the stock market. Given that people will always have to eat, you have decided to look for investment opportunities in Pakistan Petroleum Ltd. (PPL) and Attock Refinery Ltd. (ATORL). Your analysis of each company's financial statements reveals that both have negative working capital, and both have current ratio of less than 1 to 1. Based on your findings, should you be concerned about the short- term liquidity of these two companies? Explain.

Q 1. Suppose that you have 1.5 million rupees to invest in the stock market. Given that people will always have to eat, you have decided to look for investment opportunities in Pakistan Petroleum Ltd. (PPL) and Attock Refinery Ltd. (ATORL). Your analysis of each company's financial statements reveals that both have negative working capital, and both have current ratio of less than 1 to 1. Based on your findings, should you be concerned about the short- term liquidity of these two companies? Explain.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter9: Stocks And Their Valuation

Section: Chapter Questions

Problem 9TCL

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Suppose that you have 1.5 million rupees to invest in the stock market. Given that people will always have to eat, you have decided to look for investment opportunities in Pakistan Petroleum Ltd. (PPL) and Attock Refinery Ltd. (ATORL). Your analysis of each company’s financial statements reveals that both have negative working capital, and both have current ratio of less than 1 to 1. Based on your findings, should you be concerned about the short-term liquidity of these two companies? Explain.
Suppose that you have 1.5 million rupees to invest in the stock market. Given that people will always have to eat, you have decided to look for investment opportunities in Pakistan Petroleum Ltd. (PPL) and Attock Refinery Ltd. (ATORL). Your analysis of cach company's financial statements reveals that both have negative working capital, and both have current ratio of less than 1 to 1. Based on your findings, should you be concerned about the short-term liquidity of these two companies? Explain.
Q1) The following table represents two investment propositions from two different companies A and B. Investment Return at 1st year (OMR) Return 2nd year (OMR) Accumulation A 10000 3000 13000 B 3000 10000 13000 Question: In which company is it better for you to invest and why?
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1) If debts to equity ratio equal to 100% so, debts to assets ratio equal? A)50% B) 150% C) 75% 2) increasing in global. oil pricing for Jordanian industrial corporations is considered: A) opportunity B) threats C) weakness D) strength 3) the correct arrangement for the following analysis is A) financial analysis, accounting analysis, prospective analysis B) financial analysis, prospective analysis, accounting analysis C) accounting analysis, financial analysis, prospective analysis D) prospective analysis, accounting analysis, financial analysis.
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