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Answer the following questions I want to compare firm A and B's profitability. I think ROE can be biased! I should not rely on it
Answer the following questions
I want to compare firm A and B's profitability. I think ROE can be biased! I should not rely on it when we don't know about these two firms capital structure. True False If I use two different ratios to compare two firms and find two opposite results, I can conclude that, for sure, I made a mistake in my ratio analysis. True False If a firm pays part of their short term debt using their cash, it is possible to see their Current ratio gets worse! True False PE ratio of amazon is 126 now. It means for each single dollar of earning in future, investors must pay 126 dollar now. True False I am comparing stock of Apple and IBM (Both are Tech firms). To do the best market valuation analysis I think I should rely on Market to Book ratio. True FalseStep by Step Solution
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