Question 1: Debt is working to the advantage of common stockholders when

options: a- ROCE exceeds ROA b- ROA exceeds ROCE c- ROCE is equal to ROA d- Debt is never beneficial to common stockholders

Question 2: Wagon Department Store had net credit sales of $16,000,000 and cost of goods sold of $15,000,000 for the year. The average inventory for the year amounted to $2,000,000. How long does the company hold its average inventory before selling it? options: a- 365 days b- 48.7 days c- 46 days d- 30 days

Question 3: Refer to the information for M-tech Corp. Which is true of M-tech's bankruptcy risk? options: a- High probability of bankruptcy b- Low probability of bankruptcy c- Probability of bankruptcy is unclear d- Cannot be computed from the data provided

Question 4: Trend analysis helps answer all of the following questions except: options: a- Is the firm becoming more or less profitable over time? b- Is the firm becoming more or less risky? c- How is the firm responding to ongoing external economic forces? d- What is the amount of assets or capital required to generate a particular level of earnings?