Why is a firms operating return on assets a function of its, Finance Basics

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Why is a firms operating return on assets a function of its

Question: 1. Why is a firm's operating return on assets a function of its operating profit margin and total asset turnover?

2. What are the differences among a firm's gross profit margin, operating profit margin, and net profit margin?

3. What information do the price/earnings ratio and the price/book ratio give us about the firm and its investors?

4. Explain what determines a company's return on equity.

5. What is Economic Value Added? Why is it used?

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