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Essay text:
Costco's ROE remained stable year-over-year from .11 in 2003 to .12 in 2004. The company has maintained a steady profit margin, shown solid liquidity ratios, and experienced minimal solvency issues. These factors will continue to give Costco the ability to provide quality products at low costs to its customers, and as a result, we would recommend purchase of this stock because it presents a low risk opportunity to diversify one's portfolio.
I. Introduction
Costco Wholesale is the largest wholesale club operator in the United States. Operating 415 stores in 36 US states, Puerto Rico, Canada, Japan, South Korea, Taiwan, and the UK, Costco offers discount prices and on average, 4,000 products ranging from alcoholic beverages, appliances, pharmaceuticals, furniture, tires and fresh food...
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