Which ratio calculates the amount of sales generated by each $1 of debt and equity invested in the firm?

• A. Total asset turnover

• B. Return on equity

• C. Return on assets

• D. Equity multiplier

• E. DuPont identity

Which one of these best measures a firm's long-run ability to meet its obligations?

• A. Cash ratio

• B. Total asset turnover

• C. EV multiple

• D. Return on equity

• E. Equity multiplier

Two of the primary differences between a corporate bond and a Treasury bond with identical maturity dates are related to

• A. interest rate risk and time value of money.

• B. time value of money and inflation.

• C. taxes and potential default.

• D. taxes and inflation.

• E. inflation and interest rate risk.