QUESTION $42$ The required rate of return is intended to provide:

A$.$ compensation for expected inflation.

B$.$ a premium for risk assumed.

C$.$ a minimum real rate of return.

D$.$ All of the above

Question $43$

An analyst can judge a company's level of of debt by comparing these ratios:

A$.$ return$-$on$-$equity to total debt$-$to$-$assets

B$.$ return$-$on$-$equity to total asset turnover

C$.$ return$-$on$-$equity to debt turnover D$-$ return$-$on$-$equity to return$-$on$-$assets

$E*$ return$-$on$-$equity to current ratio

QUESTION $44$ The PIE ratio of a particular firm would probably be affected by which of the following?

A$.$ Investors' perception of the quality of the firm's management

B$.$ The firm's accounting practices

C$.$ Supply and demand for the security

D$.$ All of the above

Question $48$

Financial ratios are used to weigh and evaluate:

A$.$ the operating performance and capital structure of the firm.

B$.$ which stocks are the gold mine stocks when investing in the market. C$.$ which stocks are about to file for bankruptcy.

D$.$ the net present value of the company.

E$.$ which companies manage their inventories effectively.

Question $49$

Corporate pension funds pose a threat to future earnings of the company because

A$.$ the company is liable for all payments.

B$.$ unfunded pensions will be paid from future earnings.

C$.$ the firm may be unable to reinvest in new assets.

D$.$ All of the above