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Financial Ratios fully explain the kind of information the following financial ratios provide about a firm:

a. Quick ratio.

b. Cash ratio.

c. Total asset turnover.

d. Equity multiplier.

e. Long-term debt ratio.

f. Times interest earned ratio.

g. Profit margin,

h. Return on assets.

i. Return on equity.

j. Price—earnings ratio.

The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...

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