1. To determine whether a company is using leverage effectively, an analyst should consider

A. the debt to equity and times interest earned ratios.

B. inventory, accounts receivable and total asset turnover ratios.

C. the current ratio and net working capital.

D. ROA and the net profit margin.

2. Developing a general economic outlook assists in the identification of industries and firms that might be good investment opportunities.

True

False

3. Economic factors such as a weak dollar will have a negative impact on all industrial sectors.

True

False