Two popular methods of financial statement analysis are horizontal analysis and vertical analysis. Explain the difference between these two methods. BIUT, TIE E 99 = E A T 11 + OWord(s)
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- . Which one of the following is not a tool in financial statement analysis? a. Horizontal analysis O b. Circular analysis c. Vertical analysis d. Ratio analysisExpressing accounts receivable as a percentage of total assets is an example ofa. ratio analysis.b. vertical analysis.c. horizontal analysis.d. trend analysis.Net Income is calculated as follows: NI = NII- Burden – PL - + SG-T Where, bank burden (non-interest expense < non-interest Income). Select one: O True O False Next p
- Which of the following formulas is correct when describing the relationship between income (1), value (V) and rate (R)? O A.R=V/I O B. R =Ix V O C.R =1+ v O D. R =1/VWhich of the following is not a common tool used in financial statement analysis? Group of answer choices a) Credit analysis b) Common-size statement analysis c) Ratio analysis d) Random walk analysisWhat is the logic behind estimating FCF using Formula 1 (FCF = EBIT(1-TaxRate) + Depr – Capex – Chg NWC + Terminal CF)? Why are the mathematical signs of each variables the way they are? For instance, why is it “+ Depr” and “– Chg NWC”?
- Which one of the following formulas is correct? O i) Profit margin = EBIT / Sales ii) ROA = ROE / Equity multiplier %3D O ii) Capital intensity ratio = 1 / Return on assets O iv) Quick ratio = Cash / Current liabilities1. Definitions (S9.1-S9.3) Define the following terms: a. Cost of debt. b. Cost of equity. c. Company cost of capital.Which of the followings is not one of the components of ROE under the Du Pont analysis/identity? Select one:a. Profitabilityb. Efficiencyc. Liquidityd. Equity multiplier