1. Past ratios – used to show whether the change in business performance is better, same or worse than in the past.
2. Average industry ratios – these indicate a business competitiveness in the industry in which it operates in.
3. Ratios of successful businesses in the industry.
4. Ratios of budgeted performance – you can calculate the ratios from budgeted performance which are then used to compare with the actual performance. Any variance that is not favourable should be investigated.
Lellah answered the question on November 8, 2021 at 09:19
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Name five broad categories of ratio analysis.
(Solved)
Name five broad categories of ratio analysis.
Date posted:
November 8, 2021
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Answers (1)
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A company expects to earn a rate of return of 10% on its investment of sh 11,000 after one year. How much does it need...
(Solved)
A company expects to earn a rate of return of 10% on its investment of sh 11,000 after one year. How much does it need to invest now to attain the above returns?
Date posted:
November 8, 2021
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Answers (1)
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Find the compound amount, which would be obtained from a principal of sh 2000 at 8% compounded quarterly for 5 years.
(Solved)
Find the compound amount, which would be obtained from a principal of sh 2000 at 8% compounded quarterly for 5 years.
Date posted:
November 8, 2021
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Answers (1)
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If you borrowed sh 10,000 for 3 years at 5% simple annual interest, how much will you have paid by the end of three years?
(Solved)
If you borrowed sh 10,000 for 3 years at 5% simple annual interest, how much will you have paid by the end of three years?
Date posted:
November 8, 2021
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Answers (1)
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Discuss the various measures of risk.
(Solved)
Discuss the various measures of risk.
Date posted:
November 8, 2021
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Answers (1)
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State and explain the factors influencing the required rate of return.
(Solved)
State and explain the factors influencing the required rate of return.
Date posted:
November 8, 2021
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Answers (1)
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A portfolio of investments consists of the following individual investments and their market values;
Required
Calculate the weighted HPY of the portfolio of investment
(Solved)
A portfolio of investments consists of the following individual investments and their market values;
Required
Calculate the weighted HPY of the portfolio of investment
Date posted:
November 8, 2021
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Answers (1)
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The data below relates to an investment;
Required
Calculate
1. Arithmetic mean (AM)
2. Geometric mean(GM)
(Solved)
The data below relates to an investment;
Required
Calculate
1. Arithmetic mean (AM)
2. Geometric mean(GM)
Date posted:
November 8, 2021
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Answers (1)
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An investment costs sh 250,000 and its worth sh 350,000 after being held for two years. Calculate;
1. HPR
2. HPY
3. Annual HPR
4. Annual HPY
(Solved)
An investment costs sh 250,000 and its worth sh 350,000 after being held for two years. Calculate;
1. HPR
2. HPY
3. Annual HPR
4. Annual HPY
Date posted:
November 8, 2021
.
Answers (1)
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Outline the methods used in carrying out risk analysis.
(Solved)
Outline the methods used in carrying out risk analysis.
Date posted:
November 8, 2021
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Answers (1)
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State and explain the different types of long term financing.
(Solved)
State and explain the different types of long term financing.
Date posted:
November 8, 2021
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Answers (1)
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State the disadvantages of using preference share capital.
(Solved)
State the disadvantages of using preference share capital.
Date posted:
November 8, 2021
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Answers (1)
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State the advantages of using preference share capital.
(Solved)
State the advantages of using preference share capital.
Date posted:
November 8, 2021
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Answers (1)
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Outline the classification of preference shares.
(Solved)
Outline the classification of preference shares.
Date posted:
November 8, 2021
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Answers (1)
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Outline the factors influencing choice of finance.
(Solved)
Outline the factors influencing choice of finance.
Date posted:
November 8, 2021
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Answers (1)
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State the advantages of share capital as a type long term financing.
(Solved)
State the advantages of share capital as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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State the disadvantages of venture capital as a type long term financing.
(Solved)
State the disadvantages of venture capital as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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State the disadvantages of grants as a type long term financing.
(Solved)
State the disadvantages of grants as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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State the advantages of grants as a type long term financing.
(Solved)
State the advantages of grants as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)
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State the disadvantages of term loans as a type long term financing.
(Solved)
State the disadvantages of term loans as a type long term financing.
Date posted:
November 8, 2021
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Answers (1)