When Normalizing, You Usually ____ the Data by a Variable

question 31

Multiple Choice

When normalizing, you usually ____ the data by a variable so you can compare the variables fairly.

• A) multiply
• B) divide
• C) either a. or b.
• D) neither a. nor b.

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Definitions:

Net Fixed Assets

The value of all fixed assets (like property, plant, and equipment) minus any accumulated depreciation.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations.

External Financing Need

The gap between the funding a firm needs for its operations and investments, and the amount it can generate internally, implying the need to seek external funding.

Projected Growth Rate

An estimate of the rate at which a company's earnings or revenues are expected to grow in the future.