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What are the importance of the following financial ratios? Price to earnings ratio. Earnings per share. Return on equity ratio.

What are the importance of the following financial ratios? Price to earnings ratio. Earnings per share. Return on equity ratio.

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter14: Valuation: Market-based Approach
Section: Chapter Questions
Problem 8QE
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What are the importance of the following financial ratios?

  1. Price to earnings ratio.
  2. Earnings per share.
  3. Return on equity ratio.
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