Abstract
The focus of this study is on First Bank Nigeria Plc’s investment decision and the impact of ratio analysis. The first to fifth chapters of the study are in the beginning. Data were gathered through a questionnaire that was given to the employees. The chi-square (X2) statistics test and percentage analysis were also used to analyze the data. The study shows that there is a relationship between investments and that there is a relationship between investment decision making and ratio analysis. It also shows that the effectiveness of ratio analysis in business decision making enhances management choice on investment.
This study evaluated Skye Bank Plc as a case study on the effects of recapitalization in the banking sector.
However, since a corporation cannot avoid investing in capital projects, it is advised that when employing any specific way of investment assessment process, the method should have the following features.
It should increase shareholder wealth and aid in making decisions between ventures that are mutually exclusive.
It should be a standard that applies to all potential investment projects without regard to other factors.
By taking into account all cash flows, the project’s profitability should be measured.
It ought to offer a way to discern between projects that are acceptable and those that are not.
By the time the numerous investment assessment procedures listed above are evaluated, I hope to have successfully emphasized the significance and applicability of sound appraisal methods to the success of any business organization, particularly profit-oriented businesses.
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