Answered: What are the importance of the…

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

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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Question

What are the importance of the following financial ratios?

• Price to earnings ratio.

• Earnings per share.

Note: Own answer

•Return on equity ratio.

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