Examlex
"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded is referred to as
Equity Multiplier
A financial ratio that measures a company's use of debt financing by comparing total assets to shareholders' equity.
Working Capital
The difference between a company's current assets and current liabilities, indicating the available short-term assets to cover short-term debts.
Book Value
The value of an asset as recorded on the balance sheet, calculated as the cost of an asset minus accumulated depreciation.
Acid-test Ratio
Acid-test ratio is a financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets (cash, marketable securities, and current receivables) without selling any inventory.
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