Question: question 13 We should always analyze a company's performance compared to companies from other industries, not the same industry as the company we are analyzing.

question 13

We should always analyze a company's performance compared to companies from other industries, not the same industry as the company we are analyzing.

Group of answer choices

True

False

QUESTION 14

One way for a retail business, such as Target, to increase its Return on Equity is to increase its financial leverage, provided it can pay the debt back.

Group of answer choices

True

False

QUESTION 15

A company should never compare its financial statements or performance to a another company in the same industry.

Group of answer choices

True

False

Question 16

A company that is analyzing its financial health should:

Group of answer choices

calculate more than one ratio to determine profitability.

review the trend from its performance in the current and previous periods.

compare itself to peers in the same industry.

All of these answers are correct.

Question 172 pts

A company's financial ratios must be analyzed in the context of:

Group of answer choices

the ratios of company's in other industries.

the company's past performance and its peers within the same industry.

the company's future performance.

the ratios of companies in other countries.

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