Please Help with Question 2

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QUESTION 2 Is return on sales or return on equity a better basis on which to compare the performance of Cavendish Cover Cottages? Although all financial ratios are imperfect, return on equity is best suited for this case study. Although all financial ratios are imperfect, return on sales is best suited for this case study. Neither, since all financial rations are imperfect, a firm should not incorporate the use of financial ratios as a leading indicator. Both are equally important and can be interchanged with this case study