What should be the focus of an analyst with respect to the regulation of an industry?
What will be an ideal response?
In regards to regulation, a credit analyst's concern should not be with just the existence or absence of regulation in an industry. Rather, the focus with respect to regulation should be on the direction of regulation and its possible impact on the current and prospective profitability of the company. Regulation also encompasses government intervention in non-U.S. operations of a company.
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Katz reports total revenue of $375,650, cost of goods sold of $267,400 and net income of $48,325. Their total assets are $784,325 and total liabilities are $387,775. What is their return on equity (ROE)?
A) 33.72% B) 12.19% C) 6.16% D) 21.38%
On April 10, Amy agreed to buy a riding lawn mower from Mowers Plus, signing a promissory note and security agreement giving Mowers Plus a security interest in the mower. On April 15, Amy took delivery of the mower. On May 1, Mowers Plus filed a financing statement. Which of the following is correct?
a. Despite the agreement, Mowers Plus could not create a security interest in the mower since it is a consumer good. b. Mowers Plus has attachment of a security interest in Amy's mower. c. Mowers Plus completed the attachment of a security interest in the mower when it filed the financing statement on May 1. d. The security interest has not attached, but attachment is unimportant to enforceability of a security interest.