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Y the U.S. Department of Education to determine the financial composite score for proprietary and non-profit institutions. Please use these formulas to use the calculation worksheet. Ratio Methodology for Proprietary Institutions Note: Appendix added November 25, 1997, effective July 1, 1998 Section 1: Ratios and Ratio Terms Primary Reserve Ratio Adjusted Equity Total Expenses Equity Ratio Modified Equity Modified Assets Net Income Ratio Income Before Taxes Total Revenues Definitions: Adj.

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