Match the items below by entering the appropriate code letter (A to J) in the space provided.

Each item is worth 1 mark.

A.Payout ratio

B. Stock split

C.Preferred shares

D.Working capital

E.Operating line of credit

F. Diversification

G. Times interest earned ratio

H. Vertical analysis

I. Convertible bonds

J. Solvency ratios

1. The issue of additional shares to shareholders according to their percentage

of ownership.

2. Measures a companys ability to repay its long-term debit and survive over

a long period of time.

3. Pre-authorization by the bank to borrow money, up to a pre-set limit.

4. A technique that expresses each item in a financial statement as a percentage

of a total (base) amount within the same financial statement.

5.A measure of a companys solvency.

6.It can limit the usefulness of financial analysis.

7.The difference between current assets and current liabilities.

8. The percentage of net income that is distributed as cash dividends.

9. Shares that have contractual provisions that give them preference over common shares.

10. Bonds that have the option of being converted into (exchanged for) common shares