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B) True / False. 1. Higher Debt to Equity ratio means company has lower financial risk. [ ] 2. Increased Dividend per Share is a

B) True / False.

1. Higher Debt to Equity ratio means company has lower financial risk. [ ]

2. Increased Dividend per Share is a good signal of a strong performance of company to shareholders. [ ]

3. The Price - Earnings ratio (P/E) is the relationship between market price per share and companys earnings per share. [ ]

4. To calculate Inventory Turnover, a company divides Sales by Average Inventory. [ ]

5. Solvency measures a companys ability to meet its short-term debt. [ ]

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