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1. The current ratio is an example of a(n) ratio. It measures a firm's ability to meet its obligations. 2. The days sales outstanding (DSO)

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1. The current ratio is an example of a(n) ratio. It measures a firm's ability to meet its obligations. 2. The days sales outstanding (DSO) ratio is found by dividing average sales per day into accounts . The D80 is the length of time that a firm must wait after making a sale before it receives 3. Debt management ratios are used to evaluate a firm's use of financial 4. The debt ratio, which is the ratio of to , measures the percentage of funds supplied by creditors. 5. The - - ratio is calculated by dividing earnings before interest and taxes by the amount of interest charges. 6. The combined effects of liquidity, asset management, and debt on operating results are measured by ratios. 7. Dividing net income by sales gives the on sales. 8. The I ratio measures how much investors are willing to pay for each dollar of a firm's reported profits. 9. Firms with higher rates of return on stockholders' equity tend to sell at relatively hinh rafine nf nrir'n fn wall In

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