Holding all other factors constant, indicate whether each of the following changes generally signals good or bad news about a company. a) Increase in profit margin. b) Decrease in inventory turnover. c) Increase in the current ratio. d) Decrease in earnings per share. e) Increase in price-earnings ratio. f) Increase in debt to assets ratio. g) Decrease in times interest earned.

Holding all other factors constant, indicate whether each of the following changes generally signals good or bad news about a company. a) Increase in profit margin. b) Decrease in inventory turnover. c) Increase in the current ratio. d) Decrease in earnings per share. e) Increase in price-earnings ratio. f) Increase in debt to assets ratio. g) Decrease in times interest earned.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 12P

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