Page 4 20. The type of ratio which measures a company's overall performance are the a. asset management ratios b. profitability ratios C. debt management ratios d. liquidity ratios 21. When a company asks a bank to approve a line of credit, this request is usually based on the company's cash budget. a. True b. False 22. The mix of financing which produces the lowest cost of capital is the a. mix which uses the least debt b. capital budget c. optimal capital structure d. use of retained earnings 23. Which type of financing has the lowest cost? a. long-term debt b. preferred stock c. retained earnings d. common stock 24. A company which pays out the same percentage of their profits as dividends every year is following a a. stable dollar payout b. small regular dividend plus "extras" policy C. stock dividend d. constant payout ratio 25. A Johncar Corporation bond has a10% coupon bond and a maturity of 6 years. Its yield to maturity is 8.5%. What is the bond's par value? a. $85.00 b. $100.00 c. $1,000.00 d. Cannot be determined from the information provided