Question
Dear expert, Please answer the entire questions and Please, Please, Please, if you are not 100% sure that your answer is absolutely correct, or if
Dear expert,
Please answer the entire questions and Please, Please, Please, if you are not 100% sure that your answer is absolutely correct, or if you cannot answer all parts of the question correctly, kindly LEAVE the question to someone expert to answer everything without mistakes. if not then I'm going to report it.
1:Ratios that measure a firm's ability to pay its bills over the short run without undue stress are known as:
- market value ratios.
- profitability ratios.
- liquidity measures.
- long-term solvency measures.
- asset management ratios.
2:Ratios that measure a firm's financial leverage are known as ________ ratios.
- asset management
- long-term solvency
- short-term solvency
- market value
- profitability
3:Ratios that measure how efficiently a firm uses its assets to generate sales are known as ________ ratios.
- market value
- short-term solvency
- asset management
- long-term solvency
- profitability
4:Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as ________ ratios.
- asset management
- profitability
- market value
- long-term solvency
- short-term solvency
5:The financial ratio that measures the accounting profit per dollar of book equity is referred to as the:
- return on equity.
- market profit-to-book ratio.
- equity turnover.
- profit margin.
- price-earnings ratio.
6:The amount that investors are willing to pay for each dollar of annual earnings is reflected in the:
- price-earnings ratio.
- DuPont identity.
- debt-equity ratio.
- return on equity.
- return on assets.
7:A firm has a total debt ratio of .47. This means the firm has 47 cents in debt for every
- $1 in current assets.
- $.53 in total equity.
- $1 in fixed assets.
- $.53 in total assets.
- $1 in total equity.
8:Assume BGL Enterprises increases its operating efficiency by lowering its costs while holding its sales constant. As a result, given all else constant, the:
- return on equity will increase.
- profit margin will decline.
- price-earnings ratio will increase.
- return on assets will decrease.
- total debt ratio will decrease.
9:Turner's Inc. has a price-earnings ratio of 16. Alfred's Co. has a price-earnings ratio of 19. Thus, you can state with certainty that one share of stock in Alfred's:
- represents a larger percentage of firm ownership than does one share of Turner's stock.
- earns a greater profit per share than does one share of Turner's stock.
- has a higher market price than one share of stock in Turner's.
- has a higher market price per dollar of earnings than does one share of Turner's.
- sells at a lower price per share than one share of Turner's.
10:The most effective method of directly evaluating the financial performance of a firm is to compare the financial ratios of the firm to:
- those of other firms located in the same geographic area that are similarly sized.
- those of the largest conglomerate that has operations in the same industry as the firm.
- the firm's ratios from prior time periods and to the ratios of firms with similar operations.
- the average ratios of all firms within the same country over a period of time.
- the average ratios of the firm's international peer group.
11:The sustainable growth rate will be equivalent to the internal growth rate when, and only when:
- the retention ratio is equal to 1.
- the growth rate is positive.
- the plowback ratio is positive but less than 1.
- a firm has a debt-equity ratio equal to 1.
12:The sustainable rate of growth for a firm can be increased by:
- increasing the capital intensity ratio.
- increasing the dividend payout ratio.
- decreasing the debt-equity ratio.
- decreasing the profit margin.
- increasing the total asset turnover.
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