undefined What is the drawback of financial statements for which it is often necessary...

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Finance

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  1. What is the drawback of financial statements for which it is often necessary to standardize financial statements? What types of information do common-size financial statements reveal about the firm?
  2. Why management takes decisions that leads to increasing share price? Does the firm receive gain from trading by shareholders in secondary market? Why not firm considers profit maximization as the primary goal in decision making?
  3. Why is the Du Pont identity a valuable tool for analyzing the performance of a firm? Discuss the types of information it reveals compared to ROE considered by itself. In what ways DuPont can firms improve performance in future?

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