T/F if false make the statement right Every ratio tells us for every one of? whats on
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T/F
if false make the statement right
- Every ratio tells us for every one of? what’s on the? top, here’s how many we have of? what’s on the bottom.
- "Ratio", "proportion",? "fraction" and? "percent" all mean the same. thing.
- If the? debt-equity ratio is? 1.25, the equity multiplier would be 2.50.
- The higher the equity? multiplier, the greater is the proportion of a? firm’s assets that are financed with equity.
- Common-size values on the balance sheet show each item as a percent of total equity.
- ?If sales increase by? 5% and total assets fall by? 1%, the TAT ratio would go down by approximately? 6%
- ?A decrease in the current ratio indicates an improvement in a? firm’s liquidity.
- ?An increase in the cash coverage ratio means that a firm is less likely to default on its outstanding debt.
- ?Ceteris paribus?, according to the DuPont? framework, an increase in the use of debt would increase a? firm’s ROE.
- ?For firms with lower? P/E ratios, investors are valuing each dollar of earnings less than for firms with higher? P/E ratios.
- ?Corporate managers who are doing a better job of serving owners would see the? market-book ratio their firm exceed the ratio for managers who are not doing as good a job.
- Ceteris paribus?, the cash coverage ratio and the amount of debt are directly related.
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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