Three Approaches to Financial Analysis
For this assignment, please answer the following questions using complete sentences. Be sure to answer all parts of the questions completely.
- What is vertical analysis? Why would it be useful to use in financial analysis?
- What is horizontal analysis? Why would it be useful to use in financial analysis?
- Why are ratios used in financial analysis?
- How are these three approaches to financial analysis different? Why can’t you rely on a single method?
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