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Figure 21-1
Use the figure to answer the corresponding question(s) .
-The theory illustrated by Figure 21-1 is used to explain the origin of:
Profit Margin
A financial metric that measures the extent to which a company or a business activity makes money, expressed as a percentage of sales revenues.
Debt-Equity Ratio
The ratio that evaluates the equity-versus-debt financing approach for company assets.
Return on Equity
A measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.
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