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What Is TRUE When the Credit Market Is in Equilibrium

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What is TRUE when the credit market is in equilibrium?


Definitions:

Average Days

An accounting measure used to calculate the average number of days taken for a company to collect cash from its customers or pay its debts.

Dividend Yield Ratio

An economic ratio that illustrates the yearly dividend disbursement of a company as a percentage of its stock value.

Net Profit Margin

A financial ratio that shows the percentage of profit a company makes for each dollar of sales, after all expenses are deducted.

Return on Equity

A measure of a corporation's profitability that calculates how much profit a company generates with the money shareholders have invested.

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