Match the appropriate letter for the key term or concept to each definition provided (items 1-10). Note that not all key terms and concepts will be used.
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a.
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Return on investment (ROI)
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m.
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Number of days' sales in accounts
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b.
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DuPont model
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receivable
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c.
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Margin
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n.
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Earnings per share
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d.
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Turnover
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o.
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Price/earnings (P/E) ratio
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e.
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Return on equity (ROE)
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p.
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Earnings multiple
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f.
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Working capital
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q.
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Dividend yield
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g.
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Current ratio
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r.
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Dividend payout ratio
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h.
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Acid-test ratio
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s.
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Regular dividend
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i.
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Debt ratio
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t.
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Extra dividend
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j.
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Leverage ratios
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u.
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Preferred dividend coverage ratio
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k.
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Times interest earned ratio
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v.
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Debt/equity ratio
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l.
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Common size statement
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w.
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Book value per share
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1. The ratio of earnings before interest and taxes to interest expense.
2. An indicator of the relative expensiveness of a firm's common stock.
3. The ratio of net income to the annual preferred stock dividend requirement.
4. An indicator of the efficiency with which accounts receivable are collected.
5. The ratio of the annual dividend per share to the market price per share of the stock.
6. The quotient of total common stockholders' equity divided by the number of shares of common stock outstanding.
7. A dividend that is not likely to be incorporated as part of the regular dividend in the future.
8. A financial statement in which amounts are expressed in percentage terms.
9. The ratio of total liabilities to total owners' equity.
10. The percentage of net income to net sales.