Reference no: EM132253282
Instructions
Create an analysis with examples. The examples should emerge from one common company of your choosing to give the discussion a better flow.
Some important techniques for this assessment include basic financial ratio analysis and models of valuation. The more advanced analysis will make use of discounted cash flow models for developing estimates of intrinsic values.
Evaluate the following:
1. The financial ratios a credit rating agency such as Moody's or Standard & Poor's be most interested in, and which ratios would be of most interest to a stock market analyst deciding whether to buy a stock for a diversified portfolio.
2. The value of financial ratio analysis in the context of common stock investing. Provide a discussion of the decomposition of ROE including the deeper evaluation of this decomposition into the common-size income statement.
3. The major difference in approach of international financial reporting standards and U.S. GAAP accounting, and the advantages and disadvantages of each.
Support your paper with minimum of five (5) 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