What measure is used by stockholders to assess profitability

Reference no: EM13900688

1. The current year's amount of net income (after income tax) is 15% larger than that of the preceding year. Does this indicate an improved operating performance? Discuss.

2. How would you respond to a horizontal analysis that showed an expense increasing by over 100%?

3. a. What measure is used by stockholders to assess the profitability of the firm?

b. How is the ratio in (a) calculated?

4. a. What measure is used by managers in assessing the profitability of the firm?

b. How is the ratio in (a) calculated?

Reference no: EM13900688

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