Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. In 2016, the Debt Equity ratio is... Group of answer choices B) 0.002 D) 2.93 A) 2.12 E) 1.0 C) 4.2 Flag this question

1. In 2016, the Debt Equity ratio is...

Group of answer choices

B) 0.002

D) 2.93

A) 2.12

E) 1.0

C) 4.2

Flag this question

Question 2

1pts

2. In 2016, the Debt to Capital ratio is...

Group of answer choices

D) 0.68

B) 3.13

E) 0.97

A) 1.47

C) 0.50

Flag this question

Question 3

1pts

3. The ratio in Question 1 gives an indication of...

Group of answer choices

E) It does not give any indication

D) Both A and B are correct

B) How much debt the company has paid in 2016

A) How much debt the company has with the banks

C) It's a measure of the company debt exposure and the higher the number the higher the exposure

Flag this question

Question 4

1pts

4. Select the correct statement. The EBITDA interest coverage (times)

Group of answer choices

C) This ratio measures the company ability to service its debt and meet its financial obligation

B) This ratio measures the ability of the company to pay the interest expense on its debt

E) B and C are correct

A) This is earnings before interest, tax, depreciation and amortisation

D) A and B are correct

Flag this question

Question 5

1pts

5. True or False. The process of ratio analysis is to select and estimate relevant ratios, compare the ratios to industry and compare the ratios to own historical evolution.

Group of answer choices

False

True

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Decision Making And Control

Authors: Jerold Zimmerman

10th Edition

1259969495, 978-1259969492

More Books

Students also viewed these Accounting questions

Question

6. How can a message directly influence the interpreter?

Answered: 1 week ago