Which One of the Following Is Not a Basic Ratio

question 39

Multiple Choice

Which one of the following is not a basic ratio techniques used to conduct financial analysis?

• A) trend analysis
• B) sensitivity analysis
• C) cross-sectional analysis
• D) industry comparables analysis

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk.

Levered Firms

Companies that use debt in their capital structure alongside equity.

Unlevered Firms

Companies that operate without the use of borrowed money or debt in their capital structures.

Interest Tax Shield

A reduction in taxable income that results from deducting interest payments, decreasing overall tax liability.