Although Financial Ratio Analysis has limitations, it is a great tool to find the problematic areas in the company so that managers can go back and address the problems. One of the limitations is the differences in accounting standards around the world that can distort financial ratios.

Select two publicly traded US companies listed on the NASDAQ stock market and calculate each companys P/E (Price to Earnings Ratio) and MB (Market to Book Ratio). What do these ratios tell you about how investors value these two companies future prospects?

Search the Internet for an academic or industry-related article.

Select an article that relates to these concepts and explain how it relates to doing business in Saudi Arabia.

first step is to summarize the article in two paragraphs

describing what you think are the most important points made by the authors (remember to use citations where appropriate).

For the second step, include the reference listing with a hyperlink to the article.

limit your summary to two paragraphs.