Problem
A. Distinguish between horizontal and vertical analysis of financial statement data.
B. Would you expect a company in a rapidly growing technological industry to have a high or low dividend payout ratio?
C. What is meant by the term financial leverage?
D. The president of a plastics company was quoted in a business journal as stating, "We haven't had a dollar of interest-paying debt in over 10 years. Not many companies can say that." As a stockholder in this company, how would you feel about its policy of not taking on debt?