Firm with very positive prospects to raise new capital

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Reference no: EM131942793

1. How do the ratios you calculated for this year compare to those of the typical company in the industry? Do you spot any areas that could cause the company problems in the future? Explain.

2. A firm with very positive prospects, to raise new capital, the firm should avoid:

a. using retained earnings

b. to not pay cash dividends

c. new debt

d. selling stock

3. If a stock was purchased for? $3000 in January 2003 and is sold in June 2003 for? $4000, what is the taxable? result?

A. Taxable capital gain of? $1000

B. Capital gain of? $1000 and taxable income of? $500

C. Capital gain of? $1000 and taxable income of? $1000

D. Business income of? $1000 and taxable amount of? $1000

Reference no: EM131942793

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