Ratios
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For each of the ratios listed below, indicate by the appropriate code letter, whether it is a liquidity ratio, a profitability ratio, or a solvency ratio.
Code:
L = Liquidity ratio
P = Profitability ratio
S = Solvency ratio
1. Price-earnings ratio
2. Free cash flow
3. Debt to total assets ratio
4. Earnings per share
5. Current ratio
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This solution is comprised of a detailed explanation to indicate by the appropriate code letter, whether it is a liquidity ratio, a profitability ratio, or a solvency ratio.
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For each of the ratios listed below, indicate by the appropriate code letter, whether it is a ...
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