Question: . Financial ratio analysis is often divided into five areas: liquidity, activity, debt, profitability, and market ratios. Differentiate each of these areas of analysis from

. Financial ratio analysis is often divided into five areas: liquidity, activity, debt, profitability, and market ratios. Differentiate each of these areas of analysis from the others and give and define examples of each. Which is of the greatest concern to creditors?

. What three areas of analysis are combined in the modified DuPont formula? Explain how the DuPont system of analysis is used to dissect the firms results and isolate their causes.

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