4)Which ratio was primarily designed to monitor firms with
negative earnings?
-Price-sales ratio
-Market-to-book ratio
-Profit margin
-ROE
-ROA
6)The sustainable growth rate is based on the premise that:
-an additional dollar of debt will be acquired only if an
additional dollar in equity shares is issued.
-no additional equity will be added to the firm.
-the debt-equity ratio will be held constant.
-the dividend payout ratio will be zero.
-the dividend payout ratio will increase at a steady rate.
11)The Gift Shoppe has total assets of $487,920 and an equity
multiplier of 1.47. What is the debt-equity ratio?
.68
.33
.52
.47
.67
Answer
4)
-Price-sales ratio
6)The sustainable growth rate is based on the premise that:
-the debt-equity ratio will be held constant.
11)
1.47=TA/Equity
=>Equity=487920/1.47=331918.3673
Debt to Equity
ratio=(487920-331918.3673)/331918.3673=0.47