Reference no: EM131713876

Assignment

Part 1 - 250 words with one reference and include in-text citation.

Ratios for this part is attached.

Steven has just won a significant amount of money from the state lottery. He has decided to use the funds to create an investment portfolio containing stocks from different industries. Steven has learned financial ratio analysis is a tool that he can use to help make his investment decisions. Some of the companies and ratios are:

What are the difficulties in comparing the ratios of these companies to one another?

Why are the liquidity ratios for the utility and fast food companies so much different from the software and machinery manufacturing company?

Would it be advisable for the software company to carry the same debt ratio as the utility company? Why or why not?

Make a recommendation to Steven regarding these investment choices. Based on these ratios, what is your advice? If another student makes different suggestions, challenge them to justify their choices.

Part 2- Template to use for this part is attached.

Prepare a 500-750 word essay (2-3 pages) in which you explain how financial forecasting is essential to the strategic growth of a firm. Why are things like forecasting and projections important? Please point out the specific financial statements that must be used and talk about why they are important.

Use proper APA format. Use 3 references, one of which should be the textbook. A document template that is already set-up in APA format is attached here for you to use. As this is such a short writing assignment, you can omit the abstract.

First reference to use is:

Block, S., Hirt, G., Danielson, B., (Jan 2016)., Foundation of Financial Management, 16th Edition.

Attachment:- Interest-Rate-Swaps-and-Ratios.rar