Dupont framework - Study guides, Class notes & Summaries

Annual Percentage Rate - Answer The annual interest rate that is charged for borrowing money or that is earned through investment. Annuity - Answer A stream of cash flows of an equal amount paid every consecutive period.Go To Annuity Due - Answer A series of equal payments made at the beginning of consecutive periods.Go To Asset Pricing - Answer The process of valuing assets. Auction Market - Answer A secondary market with a physical location and where prices are determined by investors...

5 major types of financial ratios - liquidity, activity, leverage, profitability, and market A firm has paid off its short-term loans more quickly in the past couple of years. What might this trend indicate about the firm's financial ratios? - Its liquidity ratio is increasing. Accounts Receivable turnover, average collection period, inventory turnover, total asset turnover, and operating income return on investment. - Activity ratios Activity Ratios - measure how well a company uses its a...

A company currently has a ratio of 1.5 but hopes to improve the ratio to 2 to align more with the industry benchmark. To achieve this goal, costs were cut in production through an investment in efficient equipment, and the company achieved a higher profit margin. If this continues, you are certain that the firm will achieve its goal in two years. What is this an example of? - Progress measurement A company that produces soap, shampoo, lotion, and other personal care products has recently tak...

WGU C213 Intro to Financial Analysis Review Questions and Answers 2023/2024 Financial statement analysis - Correct Answer involves the examination of both the relationships among financial statement numbers and the trends in those numbers over time Financial Ratios - Correct Answer Relationships between financial statement amounts DuPont Framework - Correct Answer systematic approach to identifying general factors causing ROE to deviate from normal External Users - Correct Answer inves...

CFA LEVEL 1 CFAI MOCK EXAM WITH 100% QUESTIONS AND ANSWERS Can you initiate coverage on a company that is a potential client? - CORRECT ANSWER-Yes - as long as the recommendation is not unjustifiably favorable Tender Offers - CORRECT ANSWER-Mat., non-pub info -> can't use! To be GIPS compliant, a firm must adopt: - CORRECT ANSWER-the broadest definition of the firm *presented annually, to all clients Do you have to reveal referral fees even if $ isn't actually exchanged? - CORREC...

Interest rate - answer-percentage of the principal that a lender charges a borrower for the use of assets. Cost of capital - answer-Also known as Discount rate, the cost to a firm to use an investor's capital Simple interest - answer-Annual Interest = Principal x Interest Rate Total interest - answer-Total Interest = Annual interest x t Compounding Interest - answer-otal Interest = Principal x (1+Interest Rate/over/ ¿ ¿Numbers of periods - Principal Required rate of return -...

Accounts Receivable Turnover - An activity ratio found by credit sales divided by accounts receivable. Activity Ratios - A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm's operational efficiency and profitability. Average Collection Period - An activity ratio found by the number of days in a year (365) divided by AR turnover. Benchmarking - The process of completing a financial analysis to compare a firm's financial perform...

Accounts Receivable Turnover - An activity ratio found by credit sales divided by accounts receivable. Activity Ratios - A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm's operational efficiency and profitability. Average Collection Period - An activity ratio found by the number of days in a year (365) divided by AR turnover. Benchmarking - The process of completing a financial analysis to compare a firm's financial perform...

WGU D076 Finance Skills for Managers Latest Updated Already Passed What is a reasonable alternative to keeping an emergency stash of cash? Investing in a savings account Investing in a readily withdrawable account that still earns some interest is a value-preserving alternative. Which area of finance deals with sources of funding and the capital structure of corporations and seeks to increase the value of a firm to its owners? Business finance is the area of finance that deals with uses ...

In which way is accounting different from finance? Accounting is backward looking, while finance is focused on the future. Accounting is focused on allocating capital, while finance is focused on bringing in capital. Accounting is about budgeting, saving, and borrowing, while finance is about investing, forecasting, and lending. - correct answer Accounting is backward looking, while finance is focused on the future. What is the main question that both individuals and companies must conside...