Question
True or False? (please take your time with answering them. do not have to explain why it's false. I need all correct answers) Thank you.
True or False? (please take your time with answering them. do not have to explain why it's false. I need all correct answers) Thank you.
a)
Every ratio tells us for every one of? whats on the? top, heres how many we have of? whats on the bottom.
b)?If the? debt-equity ratio is? 1.25, the equity multiplier would be 2.50.
c)
The higher the equity? multiplier, the greater is the proportion of a? firms assets that are financed with equity.
d)Common-size values on the balance sheet show each item as a percent of total equity.
e)If sales increase by? 5% and total assets fall by? 1%, the TAT ratio would go down by approximately? 6%.
f)
A decrease in the current ratio indicates an improvement in a? firms liquidity.
g)
?An increase in the cash coverage ratio means that a firm is less likely to default on its outstanding debt.
h)Ceteris
paribus?,
according to the DuPont? framework, an increase in the use of debt would increase a? firms ROE.
i)?For firms with lower? P/E ratios, investors are valuing each dollar of assets less than for firms with higher? P/E ratios.
j)Corporate managers who are doing a better job of serving owners would see the? market-book ratio their firm exceed the ratio for managers who are not doing as good a job.
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