you bought a stock for $100. the first year, it falls to $80. the second year, it raises to $100. what is the average yearly return over the two years?

Answers

Answer 1

The average yearly return over the two years is 25% when it falls to $80 in the first year and raises to $100 in the second year.

How do you calculate the average yearly return over the two years?

It increases to $100 the second year you own it, returning you to your starting point (no dividends were paid). the first year, you suffered a 50% loss (you lost half of your money). You made 100% the following year (you doubled your money). Thus, (50% + 100%)/2 = 25% was the average return over the two years.

What Does an Average Annual Return Mean?

The money made from an investment over the course of the investment term is known as the average annual return (ARR). A fair average annual return ought to be greater than the interest rate received from a bank deposit.

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Related Questions

Agent Sam has a purchase agreement to buy a house from Mr. Smith for $100,000. Agent Sam and Mr. Smith agree to new terms including a price of $102,000. and sign a new agreement to replace the old one. Then Agent Sam sells the right to buy the house for $102,000. to Mr. Jones who will go to the Act of Sale and actually buy it. What are two legal concepts that have occurred

Answers

Answer:

1. The substitution of a new contract for an old one.
2. The new agreement extinguishes the rights and obligations

which term is used to describe the hierarchy of tasks to be done to complete a project?

Answers

Hi! The term used to describe the hierarchy of tasks to be done to complete a project is called a "Work Breakdown Structure" (WBS).

The WBS is a critical project management tool that breaks down a project's scope into smaller, manageable tasks. It organizes these tasks into hierarchical levels, starting from the overall project goal and then branching out into sub-tasks, activities, and work . By creating a clear and comprehensive structure, the WBS helps ensure that all project objectives are addressed, resources are allocated effectively, and the project timeline remains on track. Additionally, the WBS facilitates communication and collaboration among team members, allowing them to understand their roles and responsibilities better.

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What do you mean by a facilitator? What are the major jobs of a facilitator of non formal educational programme

Answers

Explanation:

It is important to note that much of the intermittent formal learning throughout people's....Part of being an effective facilitator of informal learning ( and non-formal education) involves.

Answer:

The definition of facilitate is "to make easy" or "ease a process." What a facilitator does is plan, guide and manage a group event to ensure that the group's objectives are met effectively, with clear thinking, good participation and full buy-in from everyone who is involved.

cellphones are one form of communication technology, give any other form

Answers

Answer:

television,newspaper,radio,laptops,computer etc..

Answer:

TRANSPORT AND LANDLINES.

A network security device that monitors incoming and outgoing network traffic and decides whether to allow or block specific traffic based on a defined set of security rules.

Answers

Answer:

Firewall.

Explanation:

Firewall can be defined as a network security device that monitors incoming and outgoing network traffic and decides whether to allow or block specific traffic based on a defined set of security rules.

Simply stated, a firewall is a network security protocol that monitors and controls inbound and outbound traffic based on set aside security rules.

A firewall is used to control access to a computer or network, as it creates a barrier between a computer or a network and the internet in order to protect against unauthorized access.

Basically, it is a network security device or security system pre-installed on most computers to essentially inspect data being transmitted to or from a computer.

Hence, firewalls are typically bidirectional, it checks all sent and received data and only allow authorized traffic through.

Answer:

Firewall.

Explanation:

Hope this helps

Structured and semi-structured interviews were developed to address what main problem? 1. Clinicians and researchers had tremendous difficulty in making consistent and accurate diagnoses of mental disorders with unstructured clinical interviews 2. The DSM used during development of structured interviews was not field trialed and resulted in disorders with weak validity 3. Insurance companies did not cover visits with diagnoses resulting from a structured interview 4. None of the above

Answers

Structured and semi-structured interviews were primarily developed to address the main problem of clinicians and researchers having tremendous difficulty in making consistent and accurate diagnoses of mental disorders with unstructured clinical interviews option (1).

Unstructured clinical interviews lacked standardized procedures, leading to variability in the way questions were asked and information was gathered. This lack of structure made it challenging to compare and analyze data across different interviews and clinicians, resulting in inconsistent diagnoses and decreased diagnostic reliability.

Structured interviews were designed to overcome this problem by providing a standardized set of questions and a systematic approach for gathering information. These interviews typically include a predetermined set of questions with specific response options, ensuring consistent data collection across different interviewers and settings. By using a structured format, clinicians and researchers can obtain more reliable and valid diagnostic information, leading to improved consistency in diagnosing mental disorders.

The other options mentioned in the question are not the main problems that structured and semi-structured interviews were developed to address. While the DSM's field trialing and insurance coverage are relevant considerations, they are not the primary reasons for the development of structured interviews.

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Charitable donations, entertainment expenses, and
financial goals are all examples of...
things to consider when creating a budget.
things that are considered needs.
activities that contribute to overspending.
activities that are necessary for a healthy lifestyle.

Answers

Answer: Things to consider when creating a budget.

Explanation: Trust me bro

Giving donations, entertainment costs, and financial goals are all examples of the things to consider when creating a budget. As donation and entertainment expenses can be the measures to control the budgeting.

How making budget is helpful?

Budget keeps the person spending tightly accurate to the mark and like to help in saving of the money. It facilitates the person income and expenses equally and shows how much person can spend on the specific thing.

Budget cuts the extra expenses of the person and provide the measurement of spending.

Thus, option A is correct.

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From each paycheck of your afterschool job, you’re able to save $45 toward the coat. You get paid twice a month. How many months will it take you to save enough money to buy your North Face jacket.

Answers

Answer:4

Explanation:The total in 4 months would equal 360

4 months will it take you to save enough money to buy your North Face jacket.

Saving per month based problem;

What information do we have?

Amount save per paycheck = $45

Amount of jacket = 350 (Missing data)

Amount save per month = 2 × Amount save per paycheck

Amount save per month = 2 × 45

Amount save per month = $90

Number of months need = 350 / 90

Number of months need = 3.88

Number of months need = 4 months

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Which words means finds its food; a consumer.?

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Answer:

The word that means finding its food is hunting

other things equal, what effects would each of the following have on aggregate demand or aggregate supply? in each case, explain the expected effects on the equilibrium price level and the level of real output. a. a reduction in the economy’s real interest rate. b. a major increase in federal spending for health care (with no increase in taxes). c. the complete disintegration of opec, causing oil prices to fall by one-half. d. a 10 percent reduction in personal income tax rates (with no change in government spending). e. a sizable increase in labor productivity (with no change in nominal wages). f. a 12 percent increase in nominal wages (with no change in productivity). g. a sizable depreciation in the international value of the dollar.

Answers

Effects would each of the following have on aggregate demand or aggregate supply are:

Aggregate demand will increase.

Aggregate supply will increase.

Aggregate supply will decrease.

What impact could this shift in combination deliver have at the charge degree and the extent of actual output? could upward thrust and actual output could decrease. AS curve shifts to the right; charge degree declines and actual output increases.

There are 3 simple motives for the downward sloping combination call for curve. These are Pigou's wealth effect, Keynes's interest-price effect, and Mundell-Fleming's exchange-price effect. These 3 motives for the downward sloping combination call for curve are distinct, but they paintings together.

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Question 20 lg pts Holding all else constant, while government is borrowing to cover budget deficits, the crowding out concept suggests that interest rates__borrowing and spending by business and households. o rise and encourage o fall and encourage o fall and discourage o rise and discourage

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Holding all else constant, while government is borrowing to cover budget deficits, the crowding out concept suggests that interest ratesrise and discourage borrowing and spending by business and households Therefore the correct option is D.

When the government borrows money, it increases the demand for credit, which causes interest rates to rise.

As interest rates rise, borrowing becomes more expensive, which discourages private sector investment and spending. This results in a reduction in the overall level of economic activity, which is known as crowding out.

Hence the correct option is D

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Companies communicate information about their business activities primarily through.

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Firms are known to have financial statements. Companies communicate information about their business activities primarily through financial statements.

What are Financial statements?

This is simply known as the written records that tells us the business activities and the financial performance of a specific firm.

Financial statements are known to be audited by government agencies, accountants, firms, etc. to known its accuracy etc.

The order of financial statements are:

Income statementCash flow statementStatement of changes in equityBalance sheet, etc.

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A salaried employee receives an annual salary of $40,000. There are 26 pay
periods during the year. During the current pay period, she receives a bonus of
$200. What is her gross pay for this pay period?
A. $1,338.46
B. $1,738.46
C. $1,538.46
D. $1,938.46

Answers

Answer:

B. $1,738.46

Explanation:

Gross pay is the regular pay plus bonuses, allowances, and commissions.

In this case, the regular pay will be $40,000 divide by 26 pay periods.

=$40,000/ 26

=$1,538. 46

Gross pay = $1,538. 46 + $200 bonus

=$1,738. 46

the purpose of integrated marketing communication is to

A.) deliver a consistent message about the organization or brand through multiple channels
B.) ensure that multiple types of marketing pieces are targeted to the appropriate market
C.) advertise a brand to multiple market segments using mass-marketing techniques
D.) send e-mails and texts, and use the organization's website to share special product offers

Answers

Answer:

im going with A

Explanation:

Which component of table setting includes knives?
O A.
lunchware
OB.
flatware
O C.
steelware
OD.
dinnerware
O E.
drinkware

Answers

Answer:

Steelware I think

Explanation:

True Stories Company sold the rights to a documentary film. They are expecting significant revenue in Year 1. The revenue stream is expected to decrease steadily until it reaches zero in Year 5. Based on this Which depreciation method should be used to most closely match the expense to the revenue stream the asset produces

Answers

The best depreciation method for this company is the double-declining-balance

In economics, depreciation occurs when a product gradually loses its value. The most common causes of depreciation are:

The product becomes obsoleteWear and tear of the productThe product's popularity decreases

Moreover, there are different methods to understand this decline in value that include:

Double-declining balanceStraight lineUnits-of-production

The double-declining balance method implies depreciation is not constant over the years but as years pass the depreciation increases. This method applies to True Stories Company because it is expected the documentary film becomes less and less popular every year, and therefore depreciation is accelerated not constant.

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Advertising Age annually compiles a list of the 100 companies that spend the most on advertising. Consumer-goods company Procter & Gamble has often topped the list, spending billions of dollars annually (Advertising Age website, March 12, 2013). Con- sider the data found in the DATAfile named Advertising. It contains annual advertising expenditures for a sample of 20 companies in the automotive sector and 20 companies in the department store sector. What is the mean advertising spent for each sector? What is the standard deviation for each sector? What is the range of advertising spent for each sector? What is the interquartile range for each sector? Based on this sample and your answers to parts (a) to (d), comment on any differences in the advertising spending in the automotive companies versus the department store companies.

Answers

Using the appropriate statistical relationship, the mean, range and Interquartile range for the advertisement spending of the two companies are worked out below.

Automotive:

598, 1512, 1573, 1642, 1714, 1720, 1781, 1798, 1813, 2008, 2014, 2024, 2058, 2166, 2202, 2254, 2366, 2526, 2531, 2901

Department :

448, 472, 474, 573, 589, 597, 598, 622, 629, 669, 706, 714, 746, 760, 782, 824, 840, 856, 947, 1011

Recall :

Sample mean = ΣX/n

n = sample size

1.)

Mean for Automotive = 39201 / 20 = 1960.05

Mean for Department = 13857 / 20 = 692.85

2.)

Range = Maximum - Minimum

Range for Automotive = 2901 - 598 = 2303

Range for Department = 1011 - 448 = 563

3.)

Interquartile Range = Upper - Lower quartile

Automotive :

Upper quartile(Q3) = 0.75(21) = 15.75th term = 2228

Lower quartile (Q1) = 0.25(21) = 5.25th term = 1717

Interquartile Range = 2228 - 1717 = 511

Department :

Upper quartile(Q3) = 0.75(21) = 15.75th term = 803

Lower quartile (Q1) = 0.25(21) = 5.25th term = 593

Interquartile Range = 893 - 593 = 210

4.)

Comparing the spread of the spending between the companies, the average spending by the Automotive company is higher with a greater level of spread.

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why is walmart in-sourcing the development of its online operation, in part by acquiring technology companies rather than outsourcing development to low-cost countries and other domestic firms?

Answers

Walmart chooses to insourcing the development of its online operation rather than outsourcing it because of some reasons such:

Walmart needs to have full control to its online operation datas.Walmart believes that the data confidentiality is important and cannot be trusted to another parties.Direct control and barriers-free communication process are important to ensure the development process and the implementation of its online operation.

Insourcing is the opposite of outsourcing where a company hires subcontractors to perform a part of their work. Insourcing allows a company to assign a person or a team to a particular project within a company. Insourcing object is the same work that actually could be outsourced by a company but decided not to. Eventhough it might be more costly to implement insourcing, but insourcing provides more security and confidentiality to a company's data and system.

Vertical integration is a company's strategy to acquire a company down or up its operation streamlines. Vertical integration also happen in a creation of a new company dedicated to support the main comany's operation streamline.

In the case of Walmart, before in-sourcing the development of it online operation, Walmart decided to acquire technology companies first. This acquisition is a form of vertical integration done by Walmart to. This integration allows Walmart to have better capacity to develop its online operation since Walmart is not a technology company.

This strategy is considered better than outsourcing the development to outside subcontractors because Walmart would also need further maintenance and development for its online operation. Outsouring would put Walmart in dependend position to its subcontractors. Hence, it is better to directly investing some of its capital through vertical integration and become indepent.

On the other hand, once outsourcing its online operation development, Walmart has to share its data and informations. Subcontractors will also gained access to most of Walmart system. This condition will put Walmart's data and its customer information at risks. Walmart needs to consider the confidentiality of these datas and the risk related to it.

Walmart as a fast-moving company may need real-time and fast data. If the online operation is outsourced to subcontractors, there will be gap in both control and communication process. Walmart needs to have direct control to ensure the data is accurate and real-time. If any problems arise, Walmart needs to be able to directly communicate with the appointed person regarding this issue. Fast responds and corrective actions are needed directly to avoid any losses from the company's operation.

Based on those reasons, Walmart decides that insourcing an acquired technology companies is a better solution than outsourcing the development of its online operation.

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The association stradegy is used to_________information

Answers

Answer:

The association strategy is used to help memorized information.

Explanation:

A benefit of using association is that it allows the learner to be creative and have fun. ... The association strategy is used to help memorized information.

Frictional unemployment is defined as a type of unemployment that is caused by workers who ______. Multiple choice question. have skills that have become obsolete or are no longer marketable have given up searching for new employment are out of work because of a decline in total spending in the economy unemployed as they actively search for a new job.

Answers

Answer: unemployment as they actively search for a new job

Explanation:

Which of the following errors will not affect the equality of the debit and credit columns of the trial balance? (A) A debit entry was recorded in a wrong debit account. B) The debit balance of a transaction has a different balance with its related credit. C The account balance was carried to the wrong column of the trial balance. (D) A debit was entered in an account as a credit.

Answers

In option (B), if a transaction's debit and credit balances do not match, it will also result in an imbalance. In option (D), if a debit is entered as a credit, it will result in a decrease in debits and an increase in recognition, leading to an imbalance.

Out of the given options, the error that will not affect the equality of the debit and credit columns of the trial balance is an option (C) where the account balance was carried to the wrong column of the trial balance.

This error affects only the individual account balance and does not affect the total debits and credits in the trial balance. However, the other options (A, B, and D) will affect the equality of the debit and credit columns of the trial balance as they result in an imbalance of total debits and credits.

In option (A), if a debit entry is recorded in a wrong debit account, it will result in one account being debited and another account being credited, leading to an imbalance. In option (B), if a transaction's debit and credit balances do not match, it will also result in an imbalance. In option (D), if a debit is entered as a credit, it will result in a decrease in debits and an increase in recognition, leading to an imbalance.

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Benjamin Franklin said, “Beware of little expenses. A small leak will sink a great ship. ” What does this mean to a person trying to build financial stability? How would you restate this saying so that it would be clearer to someone trying to grow a budget?

How would you place the order of these steps to build a budget? 1=first 2=the middle step 3=last
______Analyze cash flow and look for ways to increase your income and decrease your expenses....

______Keep track of your spending...

______Identify your income and your expenses....

What are they, and how would you explain their meaning? Give one example of each.

23.Fixed expenses

________________________________________________________________________

Flexible expenses
________________________________________________________________________

Money that comes to you from: Various jobs or work, like cutting grass or babysitting wages,
Full- or part-time employment, Allowances, Odd jobs, Interest and dividends, Other sources, including tips. Is known as your
_________________.

Where does All the money go?

If you are in the habit of buying the 4 for $4 meal special at the local famous fast food restaurant every day of the week for lunch how much would this add up over time? It might taste good going down but what might you be able to save for if you had all that cash in a savings account?

1 day 1 week 1 month 1 year 5 years 10 years
# of Days 26a 27a 28a 29a 30a 31a
4 for$4 Meal 26b 27b 28b 29b 30b 31b

Identify the LIE about Credit cards....
A. Are used to purchase goods and services.

B. Takes money from your checking account when used to pay for purchases.

C. Are subject to interest charges if the balance is not paid in full each month.

Credit Verses Debit

Which card requires you to have enough money at the time you pay for something?
Which card's balance can increase and accrue charges if you do not pay the entire amount each month?
Which card generally offers purchase protections against faulty goods?
Which card(s) may have fees associated with them?
Which card allows you to pay for unexpected emergencies when you do not have enough money?

What are the outcomes to be expected with overspending on your credit card? You need at least two outcomes for full credit

Debit to Income Ratio

After adding your total income, dividing the total monthly bills by the total income, and convert that to a decimal….What would you advise these individuals who are contemplating a large purchase?

Total Income

Total Monthly Bills

Percentage (divide by 100)

Billy $4000

$2800

?

TiQuan $5000

$4000

?

Nadaja $3000

$1000

?

39 (Billy). ________________________________

40 (TiQuan) ______________________________

41 (Nadaja) ______________________________

Which payment arrangement has the worst deal or the higher interest rate you must pay between the instalment loan or the rent to own arrangement?

What three things would you likely need an installment loan to purchase?

Explain how your credit rating would affect your interest rate applied to your installment loan.

Simply put, Finance is the management of ______________________.

Name 2 examples of items that fall under the category of a long-term financial goal.

47.Name 2 examples of items that fall under the category of a short-term financial goal.

48.. Which of the following statements about investing is FALSE?

On average, investing money in the stock market earns a higher return than putting money in a savings account.
Investing is best for long-term financial goals, like paying for retirement.
Investing is a guaranteed way to grow your money.
Investing is riskier than putting money in a savings account.

This is needed To Calculate Simple Interest (Interest = Principal x Rate x Time or I = P x R x T)

Remember to add the Simple Interest to the Principle to get the total to be paid.

Principle

Rate

Time

Interest

Total to be paid

$10,000

15%

5 years

49a

49b

$5,000

5%

8 years

50a

50b

is the purpose of financial insurance agencies?

Answers

Answer: n or f

Explanation:

Which of the following supervisory styles is most compatible with Theory Y assumptions? O a. The free-reign management style Ob The autocratic management style O c The bureaucratic management style Od The participative management style

Answers

The participative management style is most compatible with Theory Y assumptions.

Theory Y, developed by Douglas McGregor, is based on the belief that employees are intrinsically motivated, capable of self-direction, and seek to fulfill higher-level needs. It suggests that employees can be creative, responsible, and enjoy work when given the opportunity to participate in decision-making and contribute to the organization.

The participative management style aligns with these assumptions by involving employees in decision-making processes, seeking their input, and valuing their ideas and contributions. It emphasizes collaboration, teamwork, and empowerment, fostering a sense of ownership and engagement among employees. This style recognizes and harnesses the potential of employees, encouraging their active involvement in problem-solving, goal-setting, and continuous improvement.

In contrast, the other supervisory styles mentioned are less compatible with Theory Y assumptions. The free-reign management style (option a) may not provide enough structure or guidance for employees, leading to potential inefficiencies or lack of direction. The autocratic management style (option b) assumes that employees are not motivated and need strict control and supervision. The bureaucratic management style (option c) focuses on rigid adherence to rules and procedures, which may stifle employee initiative and creativity.

Therefore, the participative management style is best aligned with Theory Y assumptions and can help create a work environment that supports and leverages the potential of employees.

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Compare the product life cycle to the business cycle. Include at least one similarity and one difference.

Answers

Explanation:

A product life cycle refers to the life of a product in the market, and the processes that it goes through in relation to the business costs, as well as the sales measures. The business life cycle is the progression of a business in phases over time and is most commonly divided into five stages: launch, growth, shake-out, maturity, and decline. One major similarity between the product and project life cycles is that both are comprised of different and several phases or stages. These phases are very vital because they ensure that the requirements of the cycles are provided for and that both the goals and the objectives of the cycles are achieved. For instance, while some of the phases of the product cycle include the growth and maturation stages, those of the project life cycle include the birth and closure phases. The aim of integrating the phases in the life cycles is to ensure that there is proper coordination of the activities that take place in the cycles. The two cycles are closely related to each other. In some cases, a product may consist of more than one project, where the projects act as the subset of the product. This makes it necessary for the bigger product view to be put into consideration when it comes to project management. The product and project life cycles face various challenges which demand the adoption of strategies in the cycle phases, with the aim of ensuring that the cycles give the desired results.

The Upper Tier has a current debt-equity ratio of .52 and a target debt-equity ratio of .45. The cost of floating equity is 9.5 percent and the flotation cost of debt is 6.6 percent. What should the firm use as their weighted average flotation cost?

Answers

Answer: 8.60%

Explanation:

Given the following :

Current debt-equity ratio = 0.52

Target debt-equity ratio = 0.45

Cost of floating equity = 9.5%

Floatation cost of debt = 6.6%

The Weighted average cost is calculated by finding the Weighted average cost of both debt and equity.

1 + 0.45 = 1.45

Weight of debt= 0.45/ 1.45 =0.31034

Weight * cost of debt

0.31034 × 6.6% = 2.0482758

Weight of equity = 1/1.45 = 0.6896551

Weight * cost of equity

0.6896551 × 9.5% = 6.5517241

Sum of both

(6.55 + 2.05) % = 8.60%

differentiate between homogeneous mixtures and heterogeneous mixtures

Answers

Answer:

A homogeneous mixture is a solid, liquid or gaseous mixture that has the same proportions of its components throughout any given sample. Conversely, a heterogeneous mixture has components in which proportions vary throughout the sample.

Happy Trails, Inc. manufactures railway coaches and uses the FIFO method of process costing to record costs. The WorkminusinminusProcess Inventory of the Heating Department on October 1 was 73% complete for materials and 23% complete for conversion costs. On October 31, its ending WorkminusinminusProcess Inventory was 80% complete for materials and 43% complete for conversion costs. This means that for the ending inventory, ________% of the materials and ________% of the conversion costs were added during October.

Answers

Answer:

80 % of materials ; 43 % of conversion costs

Explanation:

The FIFO method traces equivalent units for materials and conversion costs for the following categories :

Opening Work in Process unitsUnits started and completedEnding Work in Process units

So the units not completed from last months are the first to be completed during the month (hence To finish Opening Work in Process). During the year there are units started and completed (hence Units Started and Completed) and units started that never gets completed (hence Ending Work in Process units).

All these physical units need to be expressed to the percentage of work done on them - equivalent units.

The question is focusing on Number 3 - Ending Work in Process units. So 80 % of materials and 43 % of conversion costs were added during October for these units.

In a perfectly competitive market, equilibrium price and quantity in the long are $10 and 5000 units respectively. If all firms have identical costs then how many firms are operating given that, R(q)=$500C(q)=$400 and π(q)=100 500 200 100 300

Answers

There are 5000 firms operating in the market.To determine the number of firms operating in a perfectly competitive market given the equilibrium price and quantity,

we need to consider the relationship between costs, revenue, and profit.

In a perfectly competitive market, firms aim to maximize their profits. Profit (π) is calculated as the difference between total revenue (R) and total cost (C):

π(q) = R(q) - C(q)

Given that R(q) = $500q and C(q) = $400q, we can substitute these values into the profit equation:

π(q) = $500q - $400q

π(q) = $100q

We know that the equilibrium quantity in the long run is 5000 units, so we can substitute q = 5000 into the profit equation:

π(5000) = $100 * 5000

π(5000) = $500,000

Since all firms in the perfectly competitive market have identical costs, the total profit of all firms combined will be equal to the profit per firm multiplied by the number of firms.

If the total profit is $500,000 and the profit per firm is $100, we can calculate the number of firms as:

Number of firms = Total profit / Profit per firm

Number of firms = $500,000 / $100

Number of firms = 5000

Therefore, there are 5000 firms operating in the market.

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Which of the following might experience a factor of failure related to expansion?
A. A hair salon that hires new employees immediately after it opens
B. A restaurant that doesn't have a website
C. A shoe store located near another popular shoe store
D. A grocery store with employees who miss company meetings

Answers

Answer:

Explanation:

cggm nauseousness hfff fallen

Calculate the following financial ratios. TIP: If you don't remember how to calculate financial ratios, review the Calculating Financial Ratio pages from Lesson 2 of this unit.

Answers

The financial ratio on a financial statement or items gives an insight on the firm financial position.

What is a financial ratio?

This refers to the ratio that is used to calculate a company's financial status or production against other firms.

Most decision-users makes use of these financial tool to analyse and gain information about the finance of a company's history or the entire business sector.