Questions For Financial Quiz Essay Example | Topics and Well Written Essays - 250 words

Questions For Financial Quiz - Essay Example The essay "Questions For Financial Quiz" presents a set of questions on a financial theme with the provided information about company's income and balance. One of the tasks in this quiz is to calculate firm’s ROA, ROE, Net Profit Margin, and TIE (Times Interest Earned) ratio for both 1999 and 2000. Also, the following questions are present in this quiz: Some executives, including CEO, are not quite happy with firm’s performance on profitability, especially when they look back last year. However, you believe that the company has improved its profitability during the period. Can you explain why you believe so? Calculate firm’s Current and Quick ratio for both 1999 and 2000. Why do investors want to find out firm’s current and quick ratio before they purchase its stocks? Calculate firm’s Debt ratio for both 1999 and 2000. Use firm’s long-term debt for the calculation. Explain how a firm can save its taxes through depreciation and calculate firm’s EPS and P/E ratio. Some financial analysts argue that Panther Corporation is now highly overvalued in the stock market. They, therefore, recommend selling all the shares if you have any. However, you have a totally different opinion. You believe the stock is greatly undervalued and thus, it may be a good time to buy. Please explain why you believe so? You can assume that Panther Corporation is financially and operationally as good as most of its competitors in the industry. Compute Total Financing Needed. Assume that the plant is operated at full capacity.