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Explain and Illustrate,with Simple Examples,both the Usefulness and Any Possible

Question 23

Essay

Explain and illustrate,with simple examples,both the usefulness and any possible dangers in using the:
rate-of-return on total assets ratio
rate-of-return on equity ratio
times dividends earned ratio
Why are these described as 'efficiency ratios'?

Correct Answer:

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The rate-of-return on total assets ratio...

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