Which of the following would an analyst most likely be able to determine from a common-size analysis of a company’s balance sheet over several periods?
A) an increase or decrease in sales
B) an increase or decrease in financial leverage
C) a more efficient or less efficient use of assets
This question is in the FRA Curriculum Book at the end of the chapter (26). What is the logic process behind this answer? The book’s answer wasn’t detailed. FInancial Leverage is Asset/Equity, yet vertical common size analysis for the b/s means % of Assets.
How does one see the change in Financial Leverage via common size (vertical or horizontal; the question is quite ambiguous)? |
发表于 2013-4-28 11:43
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