Which of the following statement is correct? Select one: a. Return on assets is the ratio of net income after interest expense to total assets b. All options are correct statement C. Average collection period is the average number of times it takes for the company's customers to pay their bills d. Increase in the debt ratio indicate more reliance on debt as a source of financing

Which of the following statement is correct? Select one: a. Return on assets is the ratio of net income after interest expense to total assets b. All options are correct statement C. Average collection period is the average number of times it takes for the company's customers to pay their bills d. Increase in the debt ratio indicate more reliance on debt as a source of financing

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5MC: Calculate the projected debt ratio, debt-to-equity ratio, liabilities-to-assets ratio,...

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Quiz 2: Solvency Debt-to-equity ratio Times interest earned ratio Debt service coverage ratio Cash flow from operations to capital expenditures ratio Profitability Return on assets ratio Return on sales ratio Asset turnover ratio Return on common stockholders equity ratio Leverage Earnings per share (EPS) Price/earnings (P/E) ratio Dividend payout ratio Dividend yield ratio A measure of a companys success in earning a return for the common stockholders. The relationship between a companys performance according to the income statement and its performance in the stock market. The ability of a company to remain in business over the long term. A variation of the profit margin ratio; measures earnings before payments to creditors. A companys bottom line stated on a per-share basis. The percentage of earnings paid out as dividends. The ratio of total liabilities to total stockholders equity. A measure of the ability of a company to finance long-term asset acquisitions with cash from operations. A measure of a companys success in earning a return for all providers of capital. The relationship between net sales and average total assets. The relationship between dividends and the market price of a companys stock. The use of borrowed funds and amounts contributed by preferred stockholders to earn an overall return higher than the cost of these funds. An income statement measure of the ability of a company to meet its interest payments. A statement of cash flows measure of the ability of a company to meet its interest and principal payments. How well management is using company resources to earn a return on the funds invested by various groups.