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6. Which of the following is NOT a typical category of Financial Ratios? A. Non-liquidity ratios B. Financial leverage ratios C. Profitability ratios Market value

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6. Which of the following is NOT a typical category of Financial Ratios? A. Non-liquidity ratios B. Financial leverage ratios C. Profitability ratios Market value ratios 7. Which of the following is/are external users of a company's financial statements? Company staff Creditors C. Shareholders D. Only B and C A. the break-even to our 8. If we expect EBIT to be point, then leverage may be stockholders. Greater than, Beneficial Less than, Beneficial Less than, Detrimental Both A and C D. 9. Which of the following statement is NOT conclusive? A. The effect of financial levarage depends on the company's EBIT. When EBIT is relatively high, leverage is beneficial. B. Under the expected scenario, leverage increase the returns to shareholders, as measured by both ROE and EPS. C. Shareholders are exposed to more risk under the proposed capital structure because the EPS and ROE are much more sensitive to changes in EBIT. D. Because of the impact that financial leverage has on both the expected return to stockholders and the riskiness of the stock, capital structure is an important consideration

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