Study question

1, What is trend analysis and what information can it tell you about an organization that looking at the $ s on the financial statements alone cannot provide? Your response should be in your own words.

2, What are the key types of stock typically issued by publicly traded organizations? If you were to invest $10,000 of your own funds, which type would you choose, why? Your response should be in your own words.

3, Explain how risk is included in the CAPM theory. Your response should be in your own words.

4, What role does the time value of money play in determining the issue price of a bond? Your response should be in your own words.

5, What are some of the key limitations of using ratio analysis to evaluate the performance of an organization? Your response should be in your own words.

6, Identify three key solvency ratios (debt and asset ratios), explain how they are calculated, and discuss what each ratio can tell about an organization s performance. Your response should be in your own words

7, Identify and explain the key elements that impact the time value of money. Your response should be in your own words.

8, What is common-size analysis and what information can it tell you about an organization that looking at the $ s on the financial statements alone cannot provide? Your response should be in your own words.

9, Describe the CAPM theory and identify one criticism of this theory. Your response should be in your own words.

10, Explain the three types of premiums and the role they play bond rates. Your response should be in your own words