Perform a complete ratio analysis of a firm

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1. Describe how you would use a large number of ratios to perform a complete ratio analysis of afirm. Discuss the pros and cons of these ratios

2. How are total risk, nondiversifiable risk, and diversifiable risk related? Why is nondiversifiablerisk regarded as the only relevant risk? Do you agree that this is correct?

3. Discuss NPV and IRR. Does the assumption concerning the reinvestment of intermediate cashinflow tend to favor NPV or IRR? In practice, which technique is preferred and why?

4. What is the difference between the firm's operating cycle and its cash conversion cycle?Which would be more important to you as an owner and why?

Reference no: EM131006183

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