Question: Does a rule-of-thumb approach to ratio analysis offer any value to the financial manager, or do these tend to favor the financial markets more (e.g.,

  • Does a rule-of-thumb approach to ratio analysis offer any value to the financial manager, or do these tend to favor the financial markets more (e.g., 2-1 current ratio rule or 50% debt/equity rule)?
  • Either way, of what value are these to either stakeholder (Financial Manager or Banker, or how about the investor)?

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