Answer
a. Solvency ratios
b. Liquidity ratios
c. Profitability ratios
Work Step by Step
a. Solvency ratios. The bond will mature in twenty years, making it a long-term investment.
b. Liquidity ratios. The loan's maturity will take place in the short term. Therefore, there should be adequate liquid cash to pay for it when it falls due.
c. Profitability ratios. The investor should get returns for investing their money in common stock. A profitable company will have the financial capacity to pay dividends to the investor
