ch3 - 1 If a firm has a debt-equity ratio of 1.0 then its...

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ch3 Student: ___________________________________________________________________________ 1. Common-size financial statements present all balance sheet account values as a percentage of: A. the forecasted budget. B. sales. C. total equity. D. total assets. E. last year's account value. 2. The ratios that are based on financial statement values and used for comparison purposes are called: 3. The Du Pont identity can be totally defined by which one of the following? 4. Which one of the following is the maximum growth rate that a firm can achieve without any additional external financing? 5. The sustainable growth rate is defined as the maximum rate at which a firm can grow given which of the following conditions? A. No new external financing of any kind B. No new debt but additional external equity equal to the increase in retained earnings C. New debt and external equity in equal proportions D. New debt and external equity, provided the debt-equity ratio remains constant E. No new equity and a constant debt-equity ratio 6. Which one of the following is the abbreviation for the U.S. government coding system that classifies a firm by its specific type of business operations?
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7. Builder's Outlet just hired a new chief financial officer. To get a feel for the company, she wants to compare the firm's sales and costs over the past 3 years determine if any trends are present and also determine where the firm might need to make changes. Which one of the following statements will best suit her purposes? 8. A common-size balance sheet helps financial managers determine:
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