Explain and Illustrate,with Simple Examples,both the Usefulness and Any Possible

question 22

Essay

Explain and illustrate,with simple examples,both the usefulness and any possible dangers in using the:
rate-of-returnon total assets ratio
rate-of-returnon equity ratio
times dividends earned ratio
Why are these described as 'efficiency ratios'?

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Definitions:

Macy's

An American department store chain founded in 1858, known for its wide range of consumer goods and its annual Thanksgiving Day parade.

Good Cook

An individual skilled in the art of preparing and cooking food effectively and deliciously.

Prepared

Made ready in advance for a specific purpose or use.

Sharpening Knives

The method or process of making a knife's edge sharp by grinding against a hard, rough surface.