Fill in the blanks with the correct answer (out of the choices provided).

(i) An analyst applied the DuPont System to the following data of a company:

(a) equity turnover 4.2,

(b) net profit margin 5.5%,

(c) total assets turnover 2.0 and

(d) dividend payout ratio 30%; the company’s rate of return on equity is ______________________ (11%/23.1%).

(ii) Four-times stock turnover ratio implies _____________________ months inventory holding period (3/4).

(iii) The following information is given about a company:

(a) current assets ₹900 lakh and current liabilities ₹450 lakh in current year and

(b) current assets ₹1,100 lakh and current liabilities ₹530 in previous year. The approximate percentage decrease in current ratio is ________________(0.04%/4.0%).

(iv) Presently, current assets and current liabilities of a company are ₹16 lakh and ₹8 lakh respectively. The current ratio will ________________________ (increase/decrease) on purchase of new machinery of ₹6 lakh.
(v) Purchase of treasury bills will (weaken/not affect) acid-test ratio.

(vi) Assume that the company’s existing debt-equity ratio is 2:1, the ploughing back of profits by a company will (increase/decrease) it.
(vii) A two-months debtor collection period implies that debtors turnover ratio is (6 times/2 times).
(viii) is a more rigorous test of the solvency position of a business firm. (Interest coverage ratio/Debt service coverage ratio).
(ix) ROR on shareholders’ equity is computed dividing EAT by (share capital/
shareholders’ funds).
(x) Issue of 12% preference shares will debt-equity ratio of a corporate enterprise.
(decrease/increase)