Common-size analysis is used in financial analysis to a. Evaluate changes in a companys operating cycle over

Question:

Common-size analysis is used in financial analysis to

a. Evaluate changes in a company’s operating cycle over time.

b. Predict changes in a company’s capital structure using regression analysis.

c. Compare companies of different sizes or compare a company with itself over time.

d. Restate each element in a company’s financial statement as a proportion of the similar account for another company in the same industry.

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...