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, where you can explain every step properly, and clearly. kindly LEAVE the question to someone expert in the topic, to answer everything without mistakes.
1:An increase in which one of the following accounts increases a firm's current ratio without affecting its quick ratio?
- Fixed assets
- Inventory
- Accounts receivable
- Cash
- Accounts payable
2: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.
3: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.
4: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.
5: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.
6: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.
7: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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