BUSI 690 HISTORICAL FINANCIAL
ANALYSIS CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◍ Service.
Answer: Activities designed to enhance or maintain aproduct's value
◍ Support Activities.
Answer: Firm infrastructure, human resources, technology development,
procurement.
◍ Market Capitalization.
Answer: Dollar value of total shares outstanding.
◍ Price to Earnings Ratio (P/E).
Answer: Stock Price/Earnings Per Share (EPS)
◍ Quick/Acid Test Ratio.
Answer: (Current Assets - Inventory) / Current Liabilities
◍ Three Standard Performance Dimensions.
Answer: Accounting profitability, shareholder value, and economic value
generated.
◍ Times Interest Earned (TIE) Ratio.
Answer: EBIT/Interest expense
◍ Current Ratio.
Answer: Current assets/Current liabilities
◍ Business Model - How.
Answer: The methods and processes used to deliver offerings.
◍ Technology development.
, Answer: Activities completed to improve product and the processes used to
manufacture it
◍ Profitability Ratios.
Answer: Does the Company produce enough Profit?
◍ Marketing and sales.
Answer: Activities to facilitate purchase ofproducts and to induce consumers
to do so
◍ Historical Information vs. Future Expected.
Answer: -Historical Financial Statements measure the Past:"What
Happened?"- In Business Finance we care mostly about the Future:"What Is
Expected to Happen?"
◍ Basic Earning Power Ratio (BEP).
Answer: EBIT/Total Assets
◍ Human resources.
Answer: Activities involved with recruiting, hiring,training, developing, and
compensating personnel
◍ Tangible recources.
Answer: Visible physical attributes such as labor capital land buildings Ex
operating room drugs
◍ Business Model - Why.
Answer: What activities need to be performed to create and deliver offerings
to customers.
◍ Dividend.
Answer: Percentage of profit company gives back to shareholder
◍ Return on Revenue.
Answer: Net profits/revenue.
◍ Market/Book Ratio (M/B).
Answer: Stock Price/Book Value Per Share
ANALYSIS CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◍ Service.
Answer: Activities designed to enhance or maintain aproduct's value
◍ Support Activities.
Answer: Firm infrastructure, human resources, technology development,
procurement.
◍ Market Capitalization.
Answer: Dollar value of total shares outstanding.
◍ Price to Earnings Ratio (P/E).
Answer: Stock Price/Earnings Per Share (EPS)
◍ Quick/Acid Test Ratio.
Answer: (Current Assets - Inventory) / Current Liabilities
◍ Three Standard Performance Dimensions.
Answer: Accounting profitability, shareholder value, and economic value
generated.
◍ Times Interest Earned (TIE) Ratio.
Answer: EBIT/Interest expense
◍ Current Ratio.
Answer: Current assets/Current liabilities
◍ Business Model - How.
Answer: The methods and processes used to deliver offerings.
◍ Technology development.
, Answer: Activities completed to improve product and the processes used to
manufacture it
◍ Profitability Ratios.
Answer: Does the Company produce enough Profit?
◍ Marketing and sales.
Answer: Activities to facilitate purchase ofproducts and to induce consumers
to do so
◍ Historical Information vs. Future Expected.
Answer: -Historical Financial Statements measure the Past:"What
Happened?"- In Business Finance we care mostly about the Future:"What Is
Expected to Happen?"
◍ Basic Earning Power Ratio (BEP).
Answer: EBIT/Total Assets
◍ Human resources.
Answer: Activities involved with recruiting, hiring,training, developing, and
compensating personnel
◍ Tangible recources.
Answer: Visible physical attributes such as labor capital land buildings Ex
operating room drugs
◍ Business Model - Why.
Answer: What activities need to be performed to create and deliver offerings
to customers.
◍ Dividend.
Answer: Percentage of profit company gives back to shareholder
◍ Return on Revenue.
Answer: Net profits/revenue.
◍ Market/Book Ratio (M/B).
Answer: Stock Price/Book Value Per Share
