1.The quick ratio is always larger than the current ratio.

True

False

2.Under a Dutch auction, the company pays multiple prices to repurchase the shares of stock.

True

False

3.The Five C's of credit include all of the following EXCEPT

A.Collateral

B.Conditions

C.Character

D.Capacity

E.All of the answers are correct

4.The ability for a company to pay off their short-term obligations is known as

A.Efficiency

B.Liquidity

C.Profit

D.Asset Recollection Ratio

E.None of the other answer

5.Higher debt reduces agency costs.

True

False

6.A dividend policy based on tax issues will call for a dividend when

A.The tax on ordinary income is greater than the capital gains tax

B.The tax on ordinary income is less than the capital gains tax

C.The tax on ordinary income is equal to the capital gains tax

D.The tax on ordinary income is greater than the company' WACC

E.None of the other answer