Engineering Economics
Each financial ratio is generally compared by

A ratio of some selected firms most progressive and successful at the point of consideration
A ratio developed by using the projected financial statement of the firm
A past ratio calculated from the past financial standard of the firm
All of these

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Engineering Economics
The financial analysis:

Helps a share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment
Helps to judge the success of the firm's financial plans
Helps a bank to know the financial position of the firm for granting a loan to the firm
All of these

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