_________ ratios are the ratios that shareholders are probably most interested in, among other ratios.

Multiple Choice

• Market-to-book and times interest earned

• Return on equity and price-earnings

• Long-term debt and times interest earned

• Return on assets and profit margin

• Price-earnings and debt-equity

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Grace started working for Microsoft after her graduation from college. She is now one of their financial managers. Her daily tasks include addressing questions such as

I. How should a product be marketed?

II. Should the firm build a store in a particular city?

III. Should the firm provide insurance to the workers?

IV. How many hours employees should work for each week?

Multiple Choice

• II only

• II, III, and IV only

• I, II, III, and IV

• I, II, and III only

• IV only

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Common source(s) of cash to an operating firm include:

I. decrease in inventory

II. decrease in notes payable

III. increase in common stock

IV. decrease in accounts payable

V. decrease in accounts receivable

Multiple Choice

• II and IV only

• II, III, and V only

• I, III, and V only

• I, IV, and V only

• I, II, III, IV, and V