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2006-07-27 18:02:08 · 2 answers · asked by nagy r 1 in Business & Finance Other - Business & Finance

2 answers

Ratio should include something else: debt/equity ratio or market-to-book equity ratio. The first one is the measure of leverage (English would say gearing) - how much debt you use per one dollar (pound) of equity. The second one shows by how much the market value (stock price times # of shares) exceeds the book value of equity. Kind of a crude measure of company groth prospects

2006-07-27 18:08:22 · answer #1 · answered by hec 5 · 0 0

it is the multiplying factor you use in order to make two numbers equal to each other.

2006-07-27 20:19:11 · answer #2 · answered by J 4 · 0 0

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