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Unformatted text preview: Equity Multiplier = TA / TE = 1 + D/E Inventory Turnover = Cost of Goods Sold / Inventory Market-to-book ratio = market value per share / book value per share PE Ratio = Price per share / Earnings per share Profit Margin = Net Income / Sales Quick Ratio = (CA Inventory) / CL Receivables Turnover = Sales / Accounts Receivable Return on Assets (ROA) = Net Income / Total Assets Return on Equity (ROE) = Net Income / Total Equity Times Interest Earned = EBIT / Interest Total Asset Turnover = Sales / Total Assets Total Debt Ratio = (TA TE) / TA Retention Ratio = Addition to RE / NI External Finance needed = TA TL&OE Period rate = APR / number of periods per year EAR = [1+APR/m] m- 1...
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