Examlex
Which of the following pairings is incorrect?
Debt-Equity Ratio
The measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.
Net Income
The overall earnings of a business following the deduction of all costs, taxes, and expenses from its gross revenue.
Sustainable Growth Rate
The maximum rate at which a company can grow its revenues and earnings without having to increase leverage or equity financing.
Equity Multiplier
A financial leverage ratio that measures the portion of a company’s assets that are financed by shareholders' equity.
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