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1. Debt management ratios: measure the amount of debt the firm uses. measure how effectively a firm is managing its assets. show the relationship of

1. Debt management ratios:

measure the amount of debt the firm uses.

measure how effectively a firm is managing its assets.

show the relationship of a firms cash and other current assets to its current liabilities.

show the combined effects of all areas of the firm on operating results.

2. A modified Du Pont chart shows how return on equity is affected by:

profit margin on sales

total assets turnover

leverage

all of the above

none of the above

3. The examination of ratios over time is called:

cash flow estimation

trend analysis

capital expenditure

flotation cost

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