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- Weighted average cost of capital is the combined cost of capital using a capital mix. The capital mix should be measured in terms of: Group of answer choices a. Market value of debt and equity b. Carrying value of debt and equity c. Carrying value of total assets d. Contribution margin ratiod. Calculate the Efficiency ratio which includes the sales to total assets ratio, operating return on assets, return on assets, ROA Model, return on equity, and ROE ModelNet working capital is defined as (select one): A. current assets minus current liabilities. B. a ratio measure of liquidity best used in cross-sectional analysis. C. current liabilities minus current assets. D. the portion of the firm's assets financed with short-term funds.
- Quick assets divided by current liabilities is the: Select one: a.Current ratio. b.Working capital ratio. c.Quick asset turnover ratio. d.Acid-test ratio.Describe how the following factors affect external capitalrequirements: (1) payout ratio, (2) capital intensity, (3) profitmargin._______ ratios are used to measure the speed in which various assets are converted into sales or cash. A Debt (aka Leverage) B Efficiency (aka working capital) C Profitability C Coverage
- Weighted average cost of capital is the combined cost of capital using a capital mix. The capital mix should be measured in terms of:In the DuPont system, the return on total assets (asset) is equal to (return on equity) × (financial leverage multiplier). (net profit margin) × (fixed asset turnover). (return on equity) × (total asset turnover). (net profit margin) × (total asset turnover).In a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and Debt Ratiob. Net Profit Margin Ratio and Leverage Ratioc. Net Profit Margin Ratio and Asset Turnover Ratiod. Asset Turnover Ratio and Leverage Ratio
- Based on the Liquidity ratio, which ratio determine stability, earning power and capital? Explain the formula and its impact & importance. Choose one only.Based on the income statement calculate and explain the profitability ratio and leverage ratio.Which of the following is true? a. Return on Investment equals Margin divided by Average Operating Assets b. Turnover equals Sales divided by Stockholders Equity c. Margin equals Return on Investment divided by Turnover d. Return on Investment equals Margin divided by Turnover.