What is financial leverage? Why is it so important for a company? What are the advantages and disadvantages of financial leverage?
What is the degree of financial leverage? Use the two approaches to illustrate the effect of financial leverage on financial performance of a company.
What is the basic earnings per share, and what is the diluted earnings per share? Why do we need to have the two? If a company has diluting factors, why does that cause some concerns?
Price to earnings ratio, or PE ratio, is considered the most important ratio for financial analysis. Why is that so? And, what are the shortcomings and strength of the ratio?
Companies pay out some net income as dividends, and also keep some as retained earnings. What are the purposes to distribute dividends? And, what are the main purposes to keep some net income as retained earnings?
What are the usefulness of dividend yield and book value per share in financial analysis? Illustrate your points with numerical examples.
Define stock options, restricted stock rights, and stock appreciation rights. What are the main advantages and disadvantages of each?
stayma1
dq9Needhelpwithbelow.docx
0
