Comment on How an Investor Would Use Each of the Following

question 36

Essay

Comment on how an investor would use each of the following ratios to evaluate business performance.
$$\begin{array} { | l | l | } \hline \text { Ratio } & \text { Comment } \\\hline \text { Price/Earnings Ratio } & \\\hline \text { Rate of Return on Common } & \\\text { Stockholders' Equity } & \\\hline\end{array}$$

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Definitions:

Restatement

A restatement is a legal document that methodically revises, clarifies, and simplifies the law or legal principles without introducing new law, often used by courts for reference.

Authoritative Statement

An assertion or declaration made by a recognized authority on a subject.

Quasi-Contracts

Legal agreements created by the courts between two parties who did not have a previous obligation to each other, in order to prevent unjust enrichment.

Implied-In-Fact Contracts

Agreements that are not written but formed through the actions or conduct of the parties involved, implying mutual consent.