Under what conditions would a firm’s return on common equity (ROCE)
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Short Case

Write a paper on the following:

  • In your industry, what are some commonly used financial ratios?
  • Pick one company of your choice within your industry and calculate the ROA and ROE for the company. Again, the choice of company should be different from the company you will use for your final project and different from the company you chose in the Module One discussion. You may use the Yahoo! Industry Summary to help you in choosing a company.
  • Assess the profitability of the company and summarize your findings.
  • In general, what are the limitations of financial ratios? Which limitations apply to your industry?

For additional details, please refer to the Case Study One Guidelines and Rubric document.

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