1. Leverage ratios provide you with all the information listed below, except. ?

A) Amount of financing provided by creditors relative to the amount provided by the owners.

B) A measure of capital structure of the firm.

C) The leverage that the firm has in terms of sales turnover and profit margins

D) Company's ability to meet interest payments.

2. Whirlpool and Maytag have similar product lines. Whirlpools increase in market power if it acquires Maytag would result from

a. multipoint competition.

b. an increase in scale.

c. vertical integration.

d. virtual integration.

3. Magma, Inc., acquired Vulcan, Inc., three years ago. Effective integration of the two companies' culture was never achieved, and the two firms' assets were not complementary. It is very likely that Magma will:

a. go public through an IPO.

b. review the due diligence information collected before the acquisition.

c. restructure.

d. review its tactical-level strategies.

4. Ratios that reflect whether or not a firm is efficiently using its resources are known as

A) activity ratios.

B) profitability ratios.

C) leverage ratios.

D) liquidity ratios.