Question
Which of the following solvency ratios is the best measure of a company's ability to pay interest and maturing principal amounts on its long-term debt?
Which of the following solvency ratios is the best measure of a company's ability to pay interest and maturing principal amounts on its long-term debt?
a.Times interest earned ratio.
b.Debt-to-equity ratio.
c.Earnings per share.
d.Debt service coverage ratio.
Which of the following profitability ratios is most useful in indicating the "quality" of a company's earnings?
a.Dividend yield ratio.
b.Gross profit ratio.
c.Price/earnings ratio.
d.Dividend payout ratio.
Which profitability ratio requires the use of earnings per share in its calculation?
a.Profit margin.
b.Dividend yield ratio.
c.Price/earnings ratio.
d.Return on common stockholders' equity.
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