Questions:
Analysis of Financial Statements"
• * From the e-Activity, determine why it is sometimes misleading to compare a company's financial ratios with those of other firms that operate within the same industry. Support your response with one example from your research.
• * From the scenario, determine two strategies that TFC could utilize to reach its expansion goals. You may, for example, consider your analysis of TFC's financial statements, as well as your knowledge of TFC's excessive cash position. Provide a rationale for your response.
"Time Value of Money and Bond Valuation"
• Examine the concept of time value of money in relation to corporate managers. Propose two methods in which time value of money can help corporate managers in general.
• Examine the pros and cons of a sinking fund from the viewpoint of both a firm and its bondholders. Determine the fundamental manner in which this knowledge could be helpful to a financial manager. Provide a rationale for your response.