Question

The financial ratios of a firm can best be compared to: (A) ratios of firms in...

The financial ratios of a firm can best be compared to:
(A) ratios of firms in the same city.
(B) ratios of firms having the same capital structure.
(C) ratios of firms in the same industry.
(D) ratios of firms having the same return on equity.

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Answer #1

Answer : (C) ratios of firms in the same industry

The financial ratio of firm can be compared to same industry ratio & not based on same city, capital structure or return on equity.

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