Question

What problems might robert encounter in comparing these companies to one another on the basis of their​ ratios? ​(select all the answers that​ apply.)

a. financial ratios from software companies are never very reliable.
b. the operating characteristics of firms across different industries vary significantly resulting in very different ratio values.
c. the four companies are in very different industries.
d. caution must be exercised when comparing older to newer​ firms,
e.g., utility company vs. software company?

Answer 1

The likely problems to be encountered by Roberts include the following below:

b. the operating characteristics of firms across different industries vary significantly resulting in very different ratio values.

d. caution must be exercised when comparing older to newer​ firms,

e.g., utility company vs. software company?

c. the four companies are in very different industries.

Step-by-step explanation: