Question: Could you please answer questions 1 thru 4 : Question 1 Which of the following ratios is NOT a leverage ratio? Question 1 options: a

Could you please answer questions 1 thru 4:
Question 1
Which of the following ratios is NOT a leverage ratio?
Question 1 options:
a. Total Debt/Total Assets
b. Debt-to-Equity Ratio
c. Current Ratio
d. Long Term Debt/ Total Capital
Question 2
Direct and Indirect Methods for calculating cash flow measure cash from investing and cash from financing exactly the same way
Question 2 options:
True
False
Question 3
Which of the following ratios measures management's ability to convert shareholder equity into profit?
Question 3 options:
a. Return on Assets (ROA)
b. Net Profit Margin
c. Equity Ratio
d. Return on Equity (ROE)
e. All of these ratios measure management's ability to convert shareholder equity into profit.
Question 4
Companies A and B both have positive Net Free Cash Flow in equal dollar amounts. A's Net Free Cash Flow is driven largely by Cash from Operations while B's Net Free Cash Flow arises from a combination of Cash from Investing and Cash from Financing. Based on this information, which of the following is the MOST correct or MOST representative answer.
Question 4 options:
a. A and B both have identical quality of Net Free Cash Flow.
b. A's Net Free Cash Flow is of higher quality versus B's Net Free Cash Flow.
c. B's Net Free Cash Flow is of higher quality versus A's Net Free Cash Flow.
d. Both A and B are efficient cash generating enterprises and have excellent Net Free Cash Flow positions

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