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Why are trend analysis and industry comparison important to financial ratio analysis?
Trend analysis assists financial managers and analysts see if a company's current financial situation is deteriorating or improving.
Cross-sectional analysis, or industry comparison, permits analysts to put the value of a firm's ratios in the context of its industry.
Q. Computation of Value of the Firm? Illustration:- EBIT = 50,000 10% Debentures
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