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Flashcards in Final (Ch. 3) Deck (6)
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1
Q

Common Size Statements

A
  • Financial statement in percentage form
2
Q

Financial Ratios

A
  • Relationships determined from a firm’s financial information and used for comparison purposes
3
Q

DuPont Identity

A
  • Popular expression breaking ROE into three parts: operating efficiency, assets use efficiency, and financial leverage
4
Q

Internal Growth Rate

A
  • The maximum possible growth rate a firm can achieve without external financing of any kind
5
Q

Sustainable

A
  • The maximum possible growth rate a firm can achieve without external equity financing while maintaining a constant debt-equity ratio
6
Q

Standard Industrial Classification (SIC) Codes

A
  • U.S. Government code used to classify a firm by its type of business operations