Efficiency ratios measure how well a firm is using its A. financial capital B. personnel C. assets and liabilities D. financial leverage The dividend payout ratio shows A. EPS B. the percentage of net income paid to shareholders C. the percentage of income paid to shareholders D. the ratio of dividends paid to shareholder's equity The difference between current assets and current liabilities is A. current ratio B. retained earnings C. net income D. net working capital How is the ROE related to the ROA? A. multiply ROE by the leverage ratio (equity/assets) to find ROA B. multiply ROA by the leverage ratio to find ROE C. the rate of ROE is higher than ROA D. the rate of ROA is higher than ROE If a firm is using financial leverage successfully, the ROE should be A. higher than the profit margin B. higher than ROA C. higher than if no leverage were used D. lower than if no leverage were used Times interest earned is a measure of the A. operational earnings of the firm (EBIT) compared to annual interest payments B. net earnings after taxes compared annual interest payments C. net earnings before taxes compared to annual interest payments D. gross profit compared to annual interest payments