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Conservatism advocates which of the following principles?
Debt-To-Equity Ratio
A calculation to determine a firm's financial leverage by dividing the total amount of its liabilities by the equity of its shareholders.
Equity Multiplier
A financial ratio indicating the proportion of a company's assets that are financed by stockholders’ equity, showing the level of financial leverage.
Earnings Per Share
A company's net profit divided by the number of its outstanding shares, indicating the profitability per share.
Price-Earnings Ratio
A financial metric used to evaluate a company's share price relative to its earnings per share, helping investors assess the market value of a stock.
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