Terms in this set (28)
current assets/ current liabilities
total debt ratio
total liabilities/ total assets
Debt to Equity Ratio
total liabilities/total equity
Total Assets/Total Equity
Return on Assets
Net Income/Total Assets
Return on Equity
Net Income/Total Equity
earnings per share
net income/shares outstanding
Price Earnings Ratio
stock price/earnings per share
Net working capital is defined as:
current assets minus current liabilities
Marginal tax rate
amount of tax payable on the next additional taxable dollar earned
which of the following best exemplifies the concept of an average tax rate?
Stonewall, Inc. paid $6.2 million om taxes last year
cash flow to shareholders is defined as
dividends paid minus net new capital raised
When a firm asks how to manage its day-to-day finances, the company is making ________ decision.
a working capital management
Which of the following is NOT one of the three general questions for financial managers?
cash flow management
Which of the following is NOT one of the goals of a corporation?
The process of determining what long-term investments or projects a firm should take on is called:
Total debt divided by total assets is referred to as the:
total debt ratio
which of the following is true?
income statement measures performance during a certain period of time
Which of the following is the most important noncash item in a financial statements?
The former Tyco CEO who bought $15,000 umbrella stand with the company expenses is
Which of the following is one of five categories of financial ratios?
market value ratios
The financial ratio measured as total assets divided by total equity, is the:
Standardized statements such as common-size balance sheets and income statements are useful for comparing companies of the different sizes, particularly from the same industries.
What is an agency problem?
the possibility of a problem between principal and agent. the agent may not sell something the best way for the principle of incentive is not given.
the ease of an asset turned into cash
define common-size financial statements.
common-size financial statements compare two or more years of a company's financial statements
Total Asset Turnover