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Week 2 Discussion
Please respond to
one
of the following questions:
Question A
Investors and creditors are typically not interested in the same
thing. Investors are typically interested in whether a company is
going to turn a profit over time, while a creditor is interested in
short-term cash flow. Decide whether you are an investor or
creditor. Choose two ratios for the type of external user you
chose and discuss its importance in analyzing a company.
Question B
When reviewing the financial statements of a company, there
are many different ratios to choose from. Choose a ratio that
looks at liquidity, solvency and profitability and discuss its
importance.

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