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Discuss the purpose and importance of financial ratios and financial analysis.
The writing assignment will demonstrate writing across the curriculum by responding to the following topic in a 4 to 5 page paper. Your paper must include at least five external scholarly journal references. In Lessons > Additional Resources, there are APA 6th ed. guidelines to assist you in formatting your paper.
Topic: Discuss the purpose and importance of financial ratios and financial analysis. What are the limitations of financial ratio analysis? If we divided the users of financial ratios, such as short-term lenders, long-term lenders, and stockholders, which ratios would each prefer and why? Provide examples.