Financial Decision-Making and Expansion Planning Quiz

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<p>Earnings Per Share (EPS) = The portion of a company's profit allocated to each outstanding share of common stock Retained Earnings = The portion of net income that is retained by a corporation rather than distributed to its owners as dividends Debt = An amount of money borrowed by one party from another Equity Shares = A type of share in a company that represents ownership and is the main source of equity financing</p> Signup and view all the answers

<p>Profit = Profit = Total Revenue - Total Expenses Earnings Per Share (EPS) = EPS = (Net Income - Preferred Dividends) / Average Outstanding Shares Interest = Interest = Principal x Rate x Time Tax Liability = Tax Liability = Taxable Income x Tax Rate</p> Signup and view all the answers

<p>Return on Investment (ROI) = ROI measures the gain or loss generated on an investment relative to the amount of money invested Debt-to-Equity Ratio = The debt-to-equity ratio is a measure of a company's financial leverage Net Profit Margin = Net profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends have been deducted from a company's total revenue Current Ratio = The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations</p> Signup and view all the answers

<p>Income Statement = An income statement is a financial statement that reports a company's financial performance over a specific accounting period Balance Sheet = A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time Cash Flow Statement = A cash flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents Statement of Retained Earnings = A statement of retained earnings is a financial statement that reconciles the beginning and ending retained earnings for the period</p> Signup and view all the answers

<p>Equity Financing = Equity financing is the method of raising capital by selling company stock to investors Debt Financing = Debt financing occurs when a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individuals and/or institutional investors Interest Coverage Ratio = The interest coverage ratio is a measure of a company's ability to meet its interest payments Tax Rate = The tax rate is the percentage at which an individual or corporation is taxed</p> Signup and view all the answers