Question 2 When performing an analytical review of financial statements of listed entities, the following key indicators are often used: . Gross margin Profit margin (profit for the year/revenue) P/E ratio Gearing (long term borrowings/equity) Required: Discuss, with specific reference to the four ratios above, the extent to which entities within the same business sector can be validly compared with each other. Include in your discussion the limitations of both same sector and international comparisons. (20 marks) [Total: 20 marks)