Examlex
Groombridge 34 is an M1 V star. Based on this information, which of the following are true?
Equity Multiplier
A measure of a company's financial leverage, calculated as total assets divided by total equity, indicating how much of assets are financed by equity.
Du Pont Identity
A framework for analyzing a company's return on equity (ROE) by breaking it down into three components: operating efficiency, asset use efficiency, and financial leverage.
Total Asset Turnover
A financial ratio that measures a company's efficiency in using its assets to generate sales revenue.
Statement of Cash Flows
A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.
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