Which of the following statements best compares long-term borrowing capacity ratios? A: The debt/equity ratio is more conservative than the debt ratio. B: The debt ratio is more conservative than the debt/equity ratio. C: The debt/equity ratio is more conservative than the debt to tangible net worth ratio. D: The debt to tangible net worth ratio is more conservative than the debt/equity ratio.
Which of the following statements best compares long-term borrowing capacity ratios? A: The debt/equity ratio is more conservative than the debt ratio. B: The debt ratio is more conservative than the debt/equity ratio. C: The debt/equity ratio is more conservative than the debt to tangible net worth ratio. D: The debt to tangible net worth ratio is more conservative than the debt/equity ratio.
A low debt ratio is safer than a high debt ratio.
A low debt ratio is safer than a high debt ratio.
For the same firm, the current ratio is always larger than quick ratio.
For the same firm, the current ratio is always larger than quick ratio.
An analyst makes the appropriate adjustments to the financial statements of retail companies that are lessees using a substantial number of operating leases. Compared to ratios computed from the unadjusted statements, the ratios computed from the adjusted statements would most likely be higher for:（） A: the debt-equity ratio but not the interest coverage ratio. B: the interest coverage ratio but not the debt-equity ratio. C: both the debt-equity ratio and the interest coverage ratio.
An analyst makes the appropriate adjustments to the financial statements of retail companies that are lessees using a substantial number of operating leases. Compared to ratios computed from the unadjusted statements, the ratios computed from the adjusted statements would most likely be higher for:（） A: the debt-equity ratio but not the interest coverage ratio. B: the interest coverage ratio but not the debt-equity ratio. C: both the debt-equity ratio and the interest coverage ratio.
The current ratio provides a more conservative measure of aggregate liquidity than quick ratio.( )
The current ratio provides a more conservative measure of aggregate liquidity than quick ratio.( )
A stock with a high P/E ratio is a better investment than one with a lower P/E ratio.
A stock with a high P/E ratio is a better investment than one with a lower P/E ratio.
Which one of the following statements is correct? ( ) A: An increase in the depreciation expense will not affect the cash coverage ratio. B: The debt-equity ratio can be computed as 1 plus the equity multiplier. C: Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. D: If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0.
Which one of the following statements is correct? ( ) A: An increase in the depreciation expense will not affect the cash coverage ratio. B: The debt-equity ratio can be computed as 1 plus the equity multiplier. C: Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. D: If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0.
The retention ratio can be computed as: A: 1 − Plowback ratio. B: (Change in retained earnings + Cash dividends)/Net income. C: Change in retained earnings/Cash dividends. D: 1 − (Cash dividends/Net income).
The retention ratio can be computed as: A: 1 − Plowback ratio. B: (Change in retained earnings + Cash dividends)/Net income. C: Change in retained earnings/Cash dividends. D: 1 − (Cash dividends/Net income).
Assuming all other factors remain unchanged, which of the following would most likely lead to a decrease in the market P/E ratio（） A: A rise in the stock risk premium. B: A decline in the risk-free rate. C: An increase in the dividend payout ratio.
Assuming all other factors remain unchanged, which of the following would most likely lead to a decrease in the market P/E ratio（） A: A rise in the stock risk premium. B: A decline in the risk-free rate. C: An increase in the dividend payout ratio.
The inventory turnover ratio: A: Is used to analyze profitability. B: Is used to measure solvency. C: Reveals how many times a company turns over (sells) its merchandise inventory. D: Validates the acid-test ratio. E: Calculation depends on the company's inventory valuation method.
The inventory turnover ratio: A: Is used to analyze profitability. B: Is used to measure solvency. C: Reveals how many times a company turns over (sells) its merchandise inventory. D: Validates the acid-test ratio. E: Calculation depends on the company's inventory valuation method.