Which of the following does ratio analysis in an industry set-up help compare? (Note: More than one option(s) may be correct.) ans1:A company's performance between different time period ans2:A company's performance to another ans3:A company to industry standard ans4:None of the above

Suppose you a stock analyst are performing a ratio analysis and comparing a discount merchdiser with a high end merchandiser. Suppose further that both companies have identical ROE. IF You apply the dupont equation to both firms, would you expect the three components to be the same for both companies?  If not, explain what balance balance sheet and income statements might lead to the differences in the Dupont equation components.

How can you debate the benefits and pitfalls of ratio analysis as a stand-alone analysis of a company’s strengths and weaknesses?

Identify which standard of comparison, (a) intracompany, (b) competitor, (c) industry, or (d) guidelines,best describes each of the following examples. Compare Ford’s return on assets to GM’s return on assets.

Which statement regarding relative valuation is true?  a. Relative valuation using book values is more accurate than using market values.   b. Relative valuation is often focused on current ratios that can be used to compare similar assets or entities.  c. The value of a share of a hotel business can be compared to the value of a share of an airline business.  d. Peer group average is when comparison of multiple pairings of similar entities {e.g., A vs B, B vs Ca nd A vs C) are made.