The higher a firms contribution margin ratio the more, Finance Basics

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The higher a firms contribution margin ratio the more

Question: 1. The higher a firms contribution margin ratio, the more leverage it gets from increasing sales. Correct?

2. Would you see a high profit margin of, say, 6 percent for a grocery retailer as sustainable?

3. What determines growth in equity investment in a firm?

4. A firm can have a high trailing PIE ratio, yet have a low expected earnings growth rate in the future. Is this so?

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Finance Basics: The higher a firms contribution margin ratio the more

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