Essentials of Corporate Finance (10th Edition)

Chapter 3

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Financial statements require standardization so ... more

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A common-size balance sheet is prepared by ... more

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The ratios are classified into short-term solvency... more

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Turnover ratios either have sales or the cost of ... more

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All the profitability ratios have net income in ... more

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The debt-equity ratio and the equity multiplier ... more

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The return on assets (ROA) can be expressed by ... more

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The return on equity (ROE) can be expressed by ... more

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The internal growth rate of a firm is the highest ... more

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A sustainable growth rate is the rate of growth ... more

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Firms require additional funds as they carry out ... more

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The ratios listed under the categories on the ... more

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In the price and volume category, Company B's ... more

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The financial statement includes the internal uses... more

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The Standard Industrial Classification (SIC code) ... more

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The financial statement analysis requires the ... more

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The problems associated with financial statement ... more

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All the items in a common size balance sheet are ... more

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Following are the categories of the financial ... more

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The factors affecting return on equity (ROE) are:... more

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7.76%  ; A sustainable growth rate is the maximum ... more

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Market information is used whenever it is ... more

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The net income represents 4.21% of the sales ... more

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Current ratio for 2019: 0.55 timesQuick ratio for ... more

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5.76% ; Calculate the return on equity (ROE) for ... more

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Growth rate without external financing (internal ... more

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A sudden increase in current ratio and decrease in... more

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The current of 0.50 shows that the company has ... more

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The common size financial statement represents ... more

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The peer-group analysis can be defined as a ... more

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The DuPont identity critically breaks the ... more

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The bill to book ratio provides information ... more

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The same-store sale is a measure of the ... more

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Changes in the cost of goods sold as a percentage ... more

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The cost of goods sold ratio can be improved by ... more

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Current ratio: 1.40 timesQuick ratio: 0.94 times... more

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Net income: $912,000Return on assets: 9.31%Return ... more

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The receivables turnover ratio is 12.88 times. ... more

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The inventory turnover ratio of Company A is 15.59... more

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The debt-equity ratio: 0.75 timesThe equity ... more

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Earnings per share: $1.97 per shareDividends per ... more

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14.29% ; The DuPont analysis is the breakdown of ... more

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0.29 ; Calculate the equity multiplier by dividing... more

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The days cost in payables of Company H is 87.32 ... more

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Equity multiplier: 1.65Return on equity: 11.88%Net... more

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6.21% ; Calculate the retention ratio by ... more

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13.22% ; Calculate the retention ratio by ... more

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11.62% ; Calculate the dividend payout ratio by ... more

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15.85% ; Calculate the return on equity by ... more

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Global Explanation: A balance sheet is a statement... more

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0.19 ; Calculate the profit margin by dividing the... more

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Equity Multiplier:1.84Total Assets Turnover:1.46... more

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7.77% ; Calculate the net income by multiplying ... more

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10.08% ; Calculate the retention ratio by ... more

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15.53% ; Calculate the retention ratio by ... more

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Total assets turnover ratio: 2.10 timesNew sales... more

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10.92% ; Calculate the total assets by dividing ... more

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Earning per share: $1.86 per sharePrice-earnings ... more

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5.53% ; Calculate the sales by multiplying the ... more

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3.88 times ; Calculate the enterprise value by ... more

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$530.29 ; Calculate the equity multiplier by ... more

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$11,718.65 ; Calculate the current assets by ... more

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Chain G's claim that Individual C makes double ... more

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Profit margin: 7.95%Total assets turnover ratio: 2... more

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4.40 times ; Calculate the earnings before taxes ... more

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2.23 times ; Calculate the total dividends paid by... more

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6.61% ; Calculate the total assets by dividing the... more

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The net profit margin in pounds is (6.24%). Amount... more

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Current ratio for:2018: 3.62 times2019: 4.85 ... more

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29.92% ; Calculate the profit margin by dividing ... more

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Price-earnings ratio: 26.45 timesPrice-sales ratio... more

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The current ratio is higher than the median but ... more

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7.07% ; Calculate the retention ratio by ... more

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Earnings per share of:Company A1: $0.10 per ... more

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1.30 times ; Calculate the retention ratio by ... more

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Sustainable growth rate: 24.44%Return on assets (... more

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Sustainable growth rate: 10.98%Additional ... more

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The growth rate of 12% is not possible because to ... more

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The internal growth rate is 4.74% and the ... more

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The return on equity is 81.21%. The DuPont ... more

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The ROE in 2020, 2018, and 2019 was (3.24%), 11.77... more

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Following is the common size income statement and ... more

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For Company W, the asset utilization ratios are:... more

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Current ratio: 1.45 times Quick ratio: 0.88 times ... more

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No, the comparison of Company S with Company B is ... more

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The current ratio and the quick ratio of Company S... more

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The company has a sustainable growth rate of 13.40... more

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