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1. What is the purpose of creating a vertical analysis and why is it useful in analyzing a potential investment? 2. What is the purpose

1. What is the purpose of creating a vertical analysis and why is it useful in analyzing a potential investment?

2. What is the purpose of creating a horizontal analysis and why is it useful in analyzing a potential investment?

3. Overall, what do each of the three sections of ratios (Profitability, Liquidity & Solvency) tell a person about a company?

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