Which of the following is a market strength ratio?

a. Dividend yield

b. Return on equity

c. Payables turnover

d. Debt to equity ratio

A company that is leveraged is one that

a. contains debt financing.

b. has minimized its risk of loss by acquiring a portfolio of investments.

c. contains equity financing.

d. has a high earnings per share.

A general rule in choosing among alternative investments is the greater the risk taken, the

a. greater the return required.

b. greater the price of the investment.

c. lower the potential expected.

d. lower the profits expected.

Which of the following describes the profit margin ratio?

a. Average total assets divided by net income

b. Net income plus income tax expense divided by average total assets

c. Net income divided by net revenue

d. Average total assets divided by net revenue

In conducting horizontal analysis, it is important to focus attention on the changes in

a. dollar amounts and their percentages.

b. dollar amounts.

c. the composition of the statements.

d. percentages.