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    Financial ratio analysis is conducted by managers, equity investors, long term creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratio?

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    Managers are primarily concerned with internal operations of the firm. They care about ratios such as profit margins and turnover ratios that indicate the performance of the company.

    Equity investors on the other hand, look at return on equity and the amount of ...

    Solution Summary

    The solution goes into a great amount of detail regarding the question being asked. Step by step explanation is provided for each part of the question which makes it very easy to follow along for anyone with just a basic understanding of the concepts. Overall, an excellent response to the question being asked.