Reference no: EM132962962

You are an analyst examining the financial statements of the following firms:

A large national supermarket chain that also produces some of its products;

A football club with a majority of home grown players;

A pharmaceutical company, with new and potential patented drugs in the pipeline, that expenses all of its research and development costs;

Problem i) Identify and discuss any two key accounting policies for each of these companies that would be relevant before conducting financial statement analysis.

Problem ii) Which of the above would you expect to have particularly high or low debt: equity ratios? Why?

Problem iii) Which of the above would you expect to have particularly high or low dividend payout ratios? Why?