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Investors, Employees, Managers, and Creditors Are All Interested in a Company's

Question 162

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Investors, employees, managers, and creditors are all interested in a company's ability to remain profitable over the long-run.Answer the following questions relating to profitability ratios.
a.What does the gross margin percentage measure and how is it calculated?
b.What does the return on assets measure and how is it calculated?
c.What does the return on common stockholders' equity measure and how is it calculated?

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a.The gross margin percentage shows how ...

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