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True False questions If a company is currently trading at $43 a share and earnings (EPS) over the last 12 months were $1.95 per share,

True False questions

If a company is currently trading at $43 a share and earnings (EPS) over the last 12 months were $1.95 per share, the P/E ratio for the stock would be 25 Answer 1Choose...TrueFalse
Profitability Ratios show how profitable a company is Answer 2Choose...TrueFalse
The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they come due Answer 3Choose...TrueFalse

In the DuPont system the Profitability is measured Net profit ratio: Net Profit/sales

Answer 4Choose...TrueFalse
If the market capitalization of X company is $ 50 Million and its Net Income of the year is $3.9 Million, the P/E ratio for the stock would be 12.82 Answer 5Choose...TrueFalse
In the DuPont system, the Activity is fixed asset ratio: This is a measure of fixed asset turnover or efficiency Answer 6Choose...TrueFalse

Analyzes a firms financial ratios over time is known as trend analysis

Answer 7Choose...TrueFalse

ROE can be written as Profitability x Activity x Solvency

Answer 8Choose...TrueFalse

In the DuPont system, Solvency is total asset / Common Equity (equity multiplier).

Answer 9Choose...TrueFalse

Ratio analysis help firms to make financial decisions

Answer 10Choose...TrueFalse
only answer true or false dont explain

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