The Usefulness of Financial Statement as A Guide to Investment Decision Making (A Case Study of Eternity Ltd, Sapele)

ABSTRACT

          It is a fact that the useful ness of financial statement cannot be over emphasized, thus, this study was under taking to highlighting the users and analysis the problem associated with the usefulness of financial statement.

For these objectives to be achieved, we undertook a marketing company called “Eternit Ltd Sapele” we also held an oral interview with some selected staff of the company. Our findings reveal that the major problem facing company knows what optimum level of financial statement to maintain at any given level of the business organization. In conclusion, a good financial statement does not necessary gurantive profile, so we recommended that proper operational policy should be done for them to be a correct estimation that will be required at all level of the business activities.

TABLE OF CONTENT

Title                                                                                                            i

Approval                                                                                                    ii

Dedication                                                                                                 iii

Acknowledgement                                                                                     iv

Abstract                                                                                                     vi

Table of contents                                                                                      vii     

Chapter One - Introduction

1.1    Background of the study                                                                1

1.2    Statement of problem                                                                     2

1.3    Objective of the study                                                                     2

1.4    Research Question                                                                         3

1.5    Significance of the study                                                                 4

1.6    Research Hypothesis                                                                     4

1.7    Limitation of the Study                                                                    5

1.8    Definition of Terms                                                                          5

Chapter Two - Literature review

2.1    Financial statement in perspective                                                 7

2.2    Balance sheet                                                                                  12

2.3    Profit and loss account                                                                   14

2.4    Other component of the published                                                14

2.5    Traditional appraisal techniques investment Selection Method    16

2.6    Types of investors and attitude to risk                                           24

2.7    Cash flow of DCF                                                                            27

Chapter Three - Research methodology

3.1    Research design                                                                              31

3.2    Population of the Study                                                                  31

3.3    Sampling and Sampling Size                                                          31

3.4    Method of data collection                                                                32

3.5    Reliability of the Research instrument                                           32

3.6    Validation of the Instrument                                                           33

3.7    Data analysis                                                                                   33

Chapter Four - Data Analysis and Interpretation

4.1    Data presentation                                                                            35

4.2    Hypothesis Testing                                                                         44

4.3    The Acceptability of Formulated                                                     44

4.4    Discussion of findings                                                                     47

Chapter Five - Summary conclusion and recommendation

5.1    Summary or research findings                                                        49

5.2    Conclusion                                                                                       51

5.3    Recommendation                                                                            52

References                                                                                      53

Appendix 1                                                                                        54