The Effect Of Ratio Analysis In Investment Decision

The Effect Of Ratio Analysis In Investment Decision

Abstract

This study dwells on The Effect of rate Analysis in Investment Decision in First Bank Nigeria Plc. The study begins with Chapter One to Chapter Five. Data were collected through questionnaire distributed to the workers. Chance analysis and ki- forecourt( X ²) statistics test were also employed in data analysis. The study reveals that the effectiveness of rate analysis in business decision making determines the position of liquidity and profitability of business, also improves operation decision on investment and that there’s a relationship between investments and that there’s a relationship between investment decision timber and rate analysis.

still, it’s recommended that since it isn’t possible for a company not to invest in capital design, it’s judicious that in using any particular system of investment appraisal fashion, the system should retain the following characteristics.

v It should maximize the shareholder’s wealth and help to choose among mutually exclusive systems.

v It should be a criterion which is applicable to any conceivable investment design independent of others.

v It should be a measure of the systems profitability by considering all cash- overflows.

v It should give a means of distinguishing between respectable and inferior systems.

It’s my stopgap that by the time the colorful investment appraisal ways enumerated above shall be examined, I shall have succeeded in pressing the significance and applicability of good appraisal fashion to the success of any business association especially profit acquainted company.