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How does a debt-to-equity ratio help describe the financial health of a company? What is the purpose of financial ratio analysis? Define debt and equity

  • How does a debt-to-equity ratio help describe the financial health of a company?

  • What is the purpose of financial ratio analysis?

  • Define debt and equity and explain the difference between them. Where does each appear on financial statements?

  • Describe the parts of an income statement.

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