... trends keep declining then many concerns would be addressed about the firm. P/E Ratio The price-to-earnings ratio is calculated by taking the stock's market price per to its earnings per share. As an investor ratio it's a convenient and widely accessible way to compare alternative investment ... earnings. If investors expect a firm's future earnings to grow rapidly, then the current earnings understate the future earning power of the firm. Stock price, on the other hand reflects investor expectations of future earnings and cash flows. So firms with a high expectation of earnings will ha...

• Word Count: 1615
• Approx Pages: 6
• Grade Level: High School

... power of Savings Ass. 2-Savings Banks, east coast and new England states, insured by FDICunder bank insurance fund, lg concentration of residential mortgages, commercial loans, corporate bonds, and corporate stock, greater freedom , rely on deposits than savings ass, fewer borrowed funds, Regulators of Savings Institutions: The office of Thrift supervision- in 89 under FIRREA, charters and examines all ... of equity than other banks, growth is not goal, insured by National Credit Union Insurance fund, 13 DI's Why evaluate? Stockholders, depositors use the info to decide which DI stock t...

• Word Count: 1446
• Approx Pages: 6
• Grade Level: Undergraduate

... , thus improving the company's ability to borrow more funds. The recorded gain increases its return on assets thereby enhancing its earnings performance and stock prices, as well as its ability to borrow. Enron made special purpose entries to conceal loses and increase its ability to borrow money. ... could not repay the loan, Enron pledged to make up the short falls in cash. Enron investors did not follow the three cardinal rules for investing. (1) Know your investments: Two of the nations most respected financial investors, Warren Buffet and Peter Lynch, have long recommended that peo...

• Word Count: 1893
• Approx Pages: 8
• Grade Level: Undergraduate