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Why do analysts calculate financial ratios?
The comparative measures are known as Ratios. Since the ratios show relative value, they permit financial analysts to compare information which could not be compared in its raw form. For instance, ratios may be employed to compare one ratio to a related ratio, a firm's performance to management's goals, a firm's past and present concert, or a firm's performance to the same firms.
Ho can we estimate that firm is going to benefit from projec To calculate how firm is going to benefit from project we need to calculate whether firm is earning the required ra
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