Rhino, Inc. has applied for a substantial long$-$term loan. In evaluating this request, which of the following ratios is the best measure of risk?

a$.$ debt to equity ratio

b$.$ average number of days to collect receivables

c$.$ rate of return on total assets

c$.$ current ratio

e$.$ rate of return on common stockholder's equity

$27.$

Which of the following financial statement analysis techniques best allows a potential investor to evaluate the composition of the balance sheet of two companies in the same industry of different sizes?

a$.$ Horizontal analysis

$(10.)$ Vertical Analysis

c$.$ Ratio Analysis

d$.$ Both horizontal analysis and vertical analysis focus on the relative composition of the balance sheet.

$28.$

IF ABC Company has a higher price$/$eamings ratio compared to its industry average, what could this suggest to investors?

a$.$ The company's stock is undervalued.

b$.$ The market expects strong future earnings.

c$.$ The company has a lower level of risk of bankruptcy relative to its peers.

d$.$ The market expects the company's earnings to decrease in the future.

$29.$

When evaluating a company's dividend policies, which ratio is commonly used to assess the percentage of the company's eamings that were paid out in dividends during the year?

a$.$ Debt$-$to$-$Equity Ratio

b$.$ Dividend Yield Ratio

c$.$ Dividend Payout Ratio

d$.$ Price$-$Earnings Ratio

e$.$ Rate of Return on Common Stockholder's Equity

$30.$

If the balance in the accounts receivable account for MedCo during $2021$ equals $$800,000,$ in $2022$ it equals $$824,000,$ and in $2023$ it equals $$880,000,$ the percentage to be assigned for year three in a trend $($or horizontal$)$ analysis is closest to:

a$.100\%$

b$.103\%$

c$.107\%$

d$.109\%$

e$.110\%$