What do these classes of ratios measure?

(a) Liquidity ratios.

(b) Profitability ratios.

(c) Solvency ratios. Holding all other factors constant, indicate whether each of the following signals gen. erally good or bad news about a company.

(a) Increase in earnings per share.

(b) Increase in the current ratio.

(c) Increase in the debt to total assets ratio.

(d) Decrease in free cash flow. 23.C Which ratio or ratios from this chapter do you think should be of greatest interest to:

(a) a pension fund considering investing in a corporation's 20-year bonds?

(b) a bank contemplating a short-term loan?

(c) an investor in common stock?