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6 terms

CH3 - corporate financial policy

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common-size statement
a standardized financial statement presenting all items in percentage terms. Balance sheet items are shown as a percentage of assets and income statement items as a percentage of sales
financial ratios
relationships determined from a firm's financial information and used for comparison purposes
du pont identity
popular expression breaking ROE into three parts: operating efficiency, asset use efficiency, and financial leverage
internal growth rate
the maximum possible growth rate for a firm that relies only on internal financing
sustainable growth rate
the maximum possible growth rate for a firm that maintains a constant debt ratio and doesn't sell new stock
standard industrial classification code
U.S. government code used to classify a firm by its type of business operations