(a)
Case summary:
A Researcher report indicates that expansion strategy will lead to higher profit which also impact on the stock prices of the Universal auto.
To construct:
- Business life cycle approach
- Evaluation of recommendation
Introduction:
For long term, investors hardly rely on the business life cycle approach but for short term, investors can gain value by observing the trends of the business. For this, investors trace the growth and profits which help investor to state the economy.
(b)
Case summary:
A Researcher report indicates that expansion strategy will lead to higher profit which also impact on the stock prices of the Universal auto.
To construct:
- Business life cycle approach
- Evaluation of recommendation
Introduction:
For long term, investors hardly rely on the business life cycle approach but for short term, investors can gain value by observing the trends of the business. For this, investors trace the growth and profits which help investor to state the economy.
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INVESTMENTS(LL)W/CONNECT
- a) Return calculations For each of the investments shown in the table(Attached), calculate the rate of return earned over the unspecified time period. b) ETHICS PROBLEM Risk is a major concern of almost all investors. When shareholders invest their money in a firm, they expect managers to take risks with those funds. What do you think are the ethical limits that managers should observe when taking risks with other people’s money?arrow_forwardWhich of the following statements are false? Select all that apply a. Liquidity ratios are used to measure the speed with which various accounts are converted into sales. b. When ratios of different years are being compared, inflation should be taken into consideration c. Return on total assets (ROA) is sometimes called return on investment d. Generally, inventory is concerned with the most liquid asset that a firm possesses. e. A P/E ratio of 20 indicates that investors are willing to pay $20 for each $1 of earnings.arrow_forwardYou are an investment advisor. During a consultation a client says to you "I want to diversify my portfolio. I currently hold investments in two companies, but I've read that if i add more assets to my portfolio, i can eliminate risk completely." Required. Using a diagram, advise the investor as to whether his assumption is correct.arrow_forward
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