VERTICAL FINANCIAL ANALYSIS Definition

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VERTICAL FINANCIAL ANALYSIS allows comparison of the financial ratios of a company in time - past, present and future.

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PROPORTIANATE UNIT CONCEPT is where a value or distribution is agreeing in amount, magnitude, or degree, e.g. a shareholder holding 1% outstanding shares of an entity is entitled to receive 1% of that entities declared dividend, i.e. it is in proportion.

NOMINAL RETURN is an investment return that does not take into account the effects of inflation on the investment or return.

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