which ratio should I calculate to measure :
1) the impact on financial position ?
2) shareholders wealth ?
3) financial risk and business risk ?
Ask the Tutor ACCA FM
Ratio
1. There is no one ratio. You could look at profitability ratios or at earnings per share.
2. Shareholders wealth is measured by the share price (not a ratio).
3. Financial risk is measured by the gearing ratio. Business risk is measured by the asset beta.
My free lectures deal with all of the above.
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