Reference no: EM131618395

Assignment

PLease answer each question

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

2. 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.

3. What are junk bonds and would you recommend investing in them? Defend your answer. Your response should be in your own words.

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

5. Why is the time value of money an important concept in business? Your response should be in your own words.

6. Outline the key elements of the Efficient Markey Theory and identify which, if any, you feel most accurately depicts how our market behaves. Your response should be in your own words.

7. If you were to issue a bond for your organization to raise funds for a capital project, what type of bond would you choose and why? Your response should be in your own words.

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

9. 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.

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