Week 3

Week 3 - Assignment: Outline Aspects of Financial Ratios

Research financial analysis using financial ratios. Identify and describe the five most important ratios for a potential equity investor. Explain the reasoning for your selection. Illustrate your discussion using numerical examples and respond to the following questions:

1. Identify and describe the five most important ratios for a potential bond investor in a corporate bond issuance. Explain the reasoning for your selection. Illustrate your discussion using numerical examples.

2. Identify and describe the five most important ratios for a potential bank investment in a short-term corporate loan. Explain the reasoning for your selection. Illustrate your discussion using numerical examples.

3. Identify and describe the five most important ratios for a potential shareholder to assess prior to making a stock purchase in a company. Explain the reasoning for your selection. Illustrate your discussion using numerical examples.

4. Review the article by Kaminski, Wetzel, & Guan. (2004). Describe the research question being addressed. Discuss the methods used and the conclusions reached by the study.

Support your paper with a minimum of five (5) external resources In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included. Length: 5-7 pages not including title and reference pages Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.