Common-size financial statements present all balance sheet account worths as a percent of:the prediction assets.last year"s account value.

You are watching: The sustainable growth rate is based on the premise that:

The sustainable development rate is characterized as the maximum price at i m sorry a for sure can thrive given which of the complying with conditions?No new external gaue won of any kindNo brand-new debt but additional external equity equal to the boost in preserved earningsNew debt and external equity in equal proportionsNew debt and external equity, listed the debt-equity proportion remains constantNo new external equity and also a continuous debt-equity ratio
The equity multiplier is same to:one add to the debt-equity plus the full asset debt split by total equity divided by total divided by the total asset turnover.
Which proportion was primarily designed to screen firms with negative earnings?Price-sales ratioMarket-to-book ratioProfit marginROEROA
Sweet Candies reduced its addressed assets this year without affecting the shop"s operations, sales, or equity. This reduction will boost which of the following ratios? I. Resources intensity ratioII. Return top top assetsIII. Full asset turnoverIV. Return ~ above equity
The sustainable expansion rate is based upon the premise that:an added dollar that debt will be obtained only if second dollar in equity shares is added equity will certainly be included to the firm.the debt-equity proportion will be organized constant.the dividend payout proportion will it is in zero.the dividend payout ratio will rise at a steady rate.
Financial statement analysis:is generally used to determine account values that fulfill the typical limited to interior use by a firm"s managers.provides valuable information that deserve to serve as a basis for forecasting future performance.provides useful information come shareholders yet not to enhanced by comparing outcomes to those the a firm"s peers however not by comparing outcomes to front periods.
Which among the complying with statements is correct?Peer group analysis is simpler when a firm is a conglomerate versus once it has only a single line the business.Peer group evaluation is simpler when seasonal firms have different fiscal years.Peer group analysis is simplified as soon as firms usage varying approaches of depreciation.Comparing results throughout geographic areas is easier since all nations now usage a common set of accountancy standards.Adjustments have to be made once comparing the earnings statements the firms that use different methods of audit for inventory.

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Adjustments need to be made when comparing the earnings statements of firms the use different methods of accountancy for inventory
Gently Used items has cash of $2,950, list of $28,470, addressed assets the $9,860, accounts payable of $11,900, and also accounts unification of $4,660. What is the cash ratio?
The Gift Shoppe has total assets that $487,920 and also an equity multiplier that 1.47. What is the debt-equity ratio?
A firm has actually net revenue of $28,740, depreciation the 6,170, counting of $13,420, and interest paid of $2,605. What is the cash coverage ratio
UXZ has actually sales that $683,200, price of goods sold the $512,900, and inventory that $74,315. What is the inventory turnover rate?
Kessler Cleaners has accounts unification of $28,943, full assets of $387,600, cost of goods sold the $317,400, and a resources intensity proportion of .97. What is the accounts receivable turnover rate?
Leisure assets has sales the $738,800, cost of items sold of $598,200, and accounts union of $86,700. Just how long on typical does it take the firm"s customers to pay for your purchases? assume a 365-day year.
Bed an insect Inn has yearly sales the $137,000. Earnings prior to interest and also taxes is same to 5.8 percent of sales. For the period, the firm payment $4,700 in interest. What is the profit margin if the tax price is 34 percent?
A firm has net revenue of $197,400, a return on heritage of 8.4 percent, and a debt-equity proportion of .72. What is the return on equity?
The Blue Lagoon has a return on equity of 23.62 percent, an equity multiplier the 1.48, and a funding intensity ratio of 1.06. What is the benefit margin?
World Exports has total assets the $938,280, a total asset turnover rate of 1.18, a debt-equity proportion of .47, and also a return on same of 18.7 percent. What is the firm"s net income?
Tessler ranches has a return on equity of 11.28 percent, a debt-equity proportion of 1.03, and a complete asset sales of .87. What is the return on assets?
A firm has adopted a policy through which it will certainly not seek any extr external financing. Given this, what is the maximum development rate because that the certain if it has net revenue of $32,600, full equity the $294,000, complete assets of $503,000, and a 25 percent dividend payout ratio?
High road Transport has actually a current stock price that $5.60. Because that the past year, the firm had net revenue of $287,400, complete equity the $992,300, sales that $1,511,000, and also 750,000 shares outstanding. What is the market-to-book ratio?
A fire has ruined a big percentage that the financial records of the Strongwell Co. You have actually the job of piecing together information in stimulate to release a jae won report. Girlfriend have uncovered the return on equity to it is in 13.8 percent. Sales to be $979,000, the total debt proportion was .42, and total debt was $548,000. What is the return ~ above assets?
Donegal"s Industrial products wishes to maintain a development rate that 6 percent a year, a debt-equity proportion of .45, and a dividend payout ratio of 30 percent. The ratio of complete assets come sales is consistent at 1.25. What benefit margin should the certain achieve?


Solutions hand-operated for Use with Essentials that Investments7th EditionAlan J. Marcus, Alex Kane, Bruce Swensen, Zvi Bodie