Engineering Economics
Return on investment ratio is the ratio of the:

Market price per share to earnings per share
Cost of goods sold to average cost of inventory at hand
Net credit sales to average net receivable
Net income to owner’s equity

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Engineering Economics
Each financial ratio is generally compared by

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

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