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Why a financial institution or investor would use

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Reference no: EM133007008

Select 1 of the following financial ratios listed below to use for this discussion:

Current ratio
Debt to asset ratio
Free cash flow ratio
Price-earnings ratio
Profit margin ratio
Return on total assets ratio
Working capital ratio

Question 1: Explain how the financial ratio you selected is calculated.

Question 2: Explain why a financial institution or investor would use the financial ratio.

Question 3: Explain what the result of the financial ratio calculation would tell you about the organization's financial status.

Question 4: Give an example of how you would use 1 of the financial ratios in your personal finances or current profession.

Reference no: EM133007008

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