I have 2 questions that need answered in my Finance Class.1. It is your decision whether to extend a
I have 2 questions that need answered in my Finance Class.1. It is your decision whether to extend a large amount of credit to Comic Concrete in order to fill its large order that they have placed with your firm. Your ratio analysis of Comic Concrete reveals that the firm’s financial ratios have been improving and that they now meet or exceed all industry standards. The market price of both their debt and equity, however, has fallen substantially in recent months. What would you do?2. The firm’s accountant suggests that by taking less depreciation, the firm will be able to increase its net income and therefore have sufficient earnings that the firm will not need to borrow money to fund its expansion. You are asked to comment on the accuracy of the accountant’s suggestion.
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