The ratios that are based on financial statement values and used for comparison purposes are called:

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FIN $215$ Take Home Exam $1$

A$)$ financial ratios.

B$)$ industrial statistics.

C$)$ equity standards.

D$)$ accounting returns.

E$)$ analytical standards.

The DuPont identity can be accurately defined as:

A$)$ Return on equity $$ Total asset turnover $$ Equity multiplier.

B$)$ Equity multiplier $$ Return on assets.

C$)$ Profit margin $$ Return on equity.

D$)$ Total asset turnover $$ Profit margin $$ Debt$-$equity ratio.

E$)$ Equity multiplier $$ Return on assets $$ Profit margin.

Which one of the following is the maximum growth rate that a firm can achieve without any additional external financing?

A$)$ DuPont rate

B$)$ External growth rate

C$)$ Sustainable growth rate

D$)$ Internal growth rate

E$)$ Cash flow rate