The ________ is used by financial managers as a structure for dissecting a firm's financial statements to assess its financial condition.
A) statement of cash flows
B) DuPont system of analysis
C) break-even analysis
D) technical analysis
Question 2
A firm has common stock with a market price of 25 per share and an expected dividend of 2 per share at the end of the coming year. The growth rate in dividends has been 5 percent. The cost of the firm's common stock equity is ________.
A) 5 percent
B) 8 percent
C) 10 percent
D) 13 percent