Suppose that you have 1.5 million rupees to invest in the stock market. Given that people will always have to eat, you have decided to look for investment opportunities in Pakistan Petroleum Ltd. (PPL) and Attock Refinery Ltd. (ATORL). Your analysis of each company’s financial statements reveals that both have negative working capital, and both have current ratio of less than 1 to 1. Based on your findings, should you be concerned about the short-term liquidity of these two companies? Explain.

Suppose that you have 1.5 million rupees to invest in the stock market. Given that people will always have to eat, you have decided to look for investment opportunities in Pakistan Petroleum Ltd. (PPL) and Attock Refinery Ltd. (ATORL). Your analysis of each company’s financial statements reveals that both have negative working capital, and both have current ratio of less than 1 to 1. Based on your findings, should you be concerned about the short-term liquidity of these two companies? Explain.

Name: Suppose that you have 1.5 million rupees to invest in the stock market
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Description: Suppose that you have 1.5 million rupees to invest in the stock market. Given that people will always have to eat, you have decided to look for investment opportunities in Pakistan Petroleum Ltd. (PPL) and Attock Refinery Ltd. (ATORL). Your analysis

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 2IEE

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Suppose that you have 1.5 million rupees to invest in the stock market. Given that people will always have to eat, you have decided to look for investment opportunities in Pakistan Petroleum Ltd.(PPL)and attock refinery Ltd.(ATORL). Your analysis of each company's financial statements reveales that both have negative working capital,and both have current ratio of less than 1 to 1. Based on your findings, should you be concerned about the short-term liquidity of these two company? Explain.
Suppose that you have 1.5 million rupees to invest in the stock market. Given that people will always have to eat, you have decided to look for investment opportunities in Pakistan Petroleum Ltd. (PPL) and Attock Refinery Ltd. (ATORL). Your analysis of cach company's financial statements reveals that both have negative working capital, and both have current ratio of less than 1 to 1. Based on your findings, should you be concerned about the short-term liquidity of these two companies? Explain.
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