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7) Which of the following is TRUE? A) A firm's equity multiplier has no relation to the firm's use of debt financing. B) According to

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7) Which of the following is TRUE? A) A firm's equity multiplier has no relation to the firm's use of debt financing. B) According to the DuPont framework, a firm's ROE is inversely related to its net profit margin. A higher cash coverage ratio indicates that a firm is better able to meet its interest payment obligations D) A comparison of Apple with Google for 2017 would be an example of trend analysis. 8) Assume that revenue is $90 million, cost of goods sold is $30 million, total assets are $400 million and inventories are $60 million. On the common-size statements, cost of goods sold would have an approximate value of_and inventories would have an approximate value of A)67% 8% 3396; 15% C) 15% 33% D)896; 67% 9) A company has 90 million shares of stock outstanding with a market price per share of $75.00. The fi rm's balance sheet shows total assets of $5 BILLION, total liabilities of $3 BILLION and net income of $1,200 mi This firm would have a P/E ratio of and a Market-Book ratio of B) 5.63;3.38 A)3.38;5.63 C) 5.63, 0.80 D) 0.18,338

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