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Question 5 Not yet answered Points out of Financial ratio analysis is conducted

ID: 2811908 • Letter: Q

Question

Question 5 Not yet answered Points out of Financial ratio analysis is conducted by different groups of analysts. What is the primary emphasis of each group? Flag question Select one: O a. Equity investors are interested primarily in profitability. b. Long-term creditors examine the ratios to get information on the riskiness of equity commitments. c. Equity investors do not care about the riskiness of equity commitments or the liquidity ratios. O d. Managers focus only on liquidity and look most carefully at the current ratio. Oe. Short-Term creditors emphasize on the debt, TIE and ROE ratios

Explanation / Answer

The answer to this question is

Equity investors are interested primarily in profitability

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