Higher the ratio, the more favorable it is, doesn’t stand true for Select one: a. Net profit ratio b. Operating ratio c. Liquidity ratio d. Stock turnover ratio
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A:
Q: True or False Returns from the overall market can be thought of as a combination of three factors:…
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Q: market capitalization is higher, lower, equal to total shareholders' equity
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A: Answer
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A: book to market effect is book value of the equity to the market value of the equity.
Q: Which of the following provides the best description of the liquidity ratios? Current ratio is the…
A: Solution:- Liquidity ratio measures the liquidity of a firm, i.e. how efficiently a firm is able to…
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A:
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Q: The dividend yield ratio decreases when earnings per share increases. True or False True False
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Q: Which of the following ratios is not considered to be a test of profitability? Group of answer…
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- Which of the following typically is true for profitability ratios? a. Growth stocks have lower price to earnings ratios.b. Companies in more competitive industries have higher profit margins.c. The gross profit ratio declines as competition increases.d. When a company has debt, its return on equity will be lower than its return on assets.It is possible for the postmerger P/E ratio to move in a direction opposite to that of the immediate postmerger earnings per share. Explain why this could happen.Based on these calculations, which company appears to be more risky and which company appears to be more profitable? How can you tell? (Keep in mind that the current ratio and debt to equity ratio are "risk ratios" and the gross profit ratio and return on equity ratio are "profitability ratios").
- Which of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection PeriodTrue or False Returns from the overall market can be thought of as a combination of three factors: operating profit, significant expansion or contraction and amount of dividendsRatios: Which of the following ratios is not considered to be a test of profitability? Long-Term Debt to Total Capital Earnings Per Share Return On Assets Net Profit Margin
- What are the siginificance of financial ratios (i.e. current ratio; DSO; TATO; profit margin; ROA; ROI)? How do they help us interpert financial data? What are the differences between ratios (i.e. profiability; liquidity; leverage)? What information do they provide for us?Ratios that measure liquidity include all of the following except:a. the leverage ratio.b. inventory turnover.c. the current ratio.d. the quick ratioThe return on assets ratio is a: Group of answer choices A)Liquidity ratio. b)Solvency ratio. C)Profitability ratio. D)Market indicator ratio. e)None of the above
- Determine whether each of the following changes in risk ratios is good news or bad news about a company.a. Increase in receivables turnover.b. Decrease in inventory turnover.c. Increase in the current ratio.d. Increase in the debt to equity ratio.Explain whether the following situations, taken independently, would be favorable or unfavorable: ( a ) increase ingross profit percentage, ( b ) decrease in inventory turnoverratio, ( c ) increase in earnings per share, ( d ) decrease indays to collect, and ( e ) increase in net profit margin.When is potentially dilutive security anti-dilutive? A. The definition of diluted earnings per share requires that diluted earnings per share reflect the best-case scenario or maximum potential decrease in EPS. So if security decreases the earnings per share ratio, it is, by definition, anti-dilutive. B. The definition of diluted earnings per share requires that diluted earnings per share reflect the worst-case scenario or maximum potential decrease in EPS. So if security increases the earnings per share ratio, it is, by definition, anti-dilutive. C. The definition of diluted earnings per share requires that diluted earnings per share reflect the best-case scenario or maximum potential increase in EPS. So if security decreases the earnings per share ratio, it is, by definition, anti-dilutive. D. The definition of diluted earnings per share requires that diluted earnings per share reflect the worst-case scenario or maximum potential increase in EPS. So if a security…