41. For Paxton Corporation, return on equity is substantially higher than return on investment. What does that tell you about the company? 42. How is earnings per share calculated, and...

41. For Paxton Corporation, return on equity is substantially higher than return on investment. What does that tell you about the company?

42. How is earnings per share calculated, and what does the amount of earnings per share tell you about a company?

43. Gardner Company and Chavez Company are similar and similar-sized companies operating in the same industry. At the end of the most recent year, Gardner's price/earnings ratio was 22.0, and Chavez's price/earnings ratio was 14.2. What conclusion would you draw based on the difference in price/earnings ratios for the two companies?

44. Discuss the limitations that affect financial statement analysis.

45. Describe the differences between the liquidity ratios, solvency ratios and profitability ratios. Identify examples of each type of ratio as well.