Some of the Cash Flows Shown on a Time Line

question 143

True/False

Some of the cash flows shown on a time line can be in the form of annuity payments while others can be uneven amounts.

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Definitions:

Debt-Equity Ratio

A ratio indicating the finance strategy of mixing shareholders' equity and debt for asset acquisition.

Profit Margin

A financial performance metric that indicates the percentage of revenue that remains as profit after accounting for costs and expenses.

Sustainable Rate Of Growth

The maximum rate at which a company can grow its sales and earnings without increasing its financial leverage or debt.

Retention Ratio

The retention ratio is a financial metric indicating the percentage of a company's earnings that are not paid out as dividends but are reinvested back into the business.