Q19:

creditor mostly interested in

a.

Financial leverage

b.

Efficiency

c.

Liquidity

d.

Marketability

Q20:

if Ali Co. has common share ( $ 0.25 par value) $100,000. the market value per share is $ 2. the company generates net income as $ 40,000 and dividends announced is $ 10,000. the dividends coverage ratio is

a.

4 times

b.

8 times

c.

25%

d.

50%