Pre-Flight - d. A decrease in the debt ratio. Which of the...

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Which group of financial ratios measure a company's ability to meet short term obligations? a. Liquidity b. Asset Management c. Debt Management d. Profitability Which of the following ratios were clearly better for Verizon vs. AT&T in both 2007 and 2006? a. Days Sales Outstanding b. Fixed Asset Turnover c. Total Asset Turnover d. None of the above were better for Verizon both years. Which of the following ratios would you like to see decline over time for a company? a. Inventory Turnover b. Days Sales Outstanding c. Fixed Asset Turnover d. Total Asset Turnover Which of the following trends would be the biggest sign of decline in a company's debt management situation? Wrong a. An increase in both the debt and times-interest earned ratios. b. A decrease in the debt ratio and an increase in the times-interest earned ratio. c. An increase in the debt ratio and a decrease in the times-interest earned ratio.
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Unformatted text preview: d. A decrease in the debt ratio. Which of the following ratios is equal to profit margin times total asset turnover? Wrong a. basic earning power b. return on assets c. return on equity d. equity multiplier What are the operational component(s) of the DuPont Equation? a. profit margin b. total asset turnover c. equity multiplier d. Both A and B Which of the following would increase a company's return on equity (all else constant)? a. An increase in the debt ratio. b. A decrease in the debt ratio. c. A decrease in the profit margin d. A decrease in total asset turnover. Which ratio(s) were better for AT&T vs. Verizon in both 2007 and 2006? a. only the debt ratio b. only the times-interest-earned ratio c. the debt and time-interest-earned ratios d. none of AT&T debt management ratios were better than Verizon both years....
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Pre-Flight - d. A decrease in the debt ratio. Which of the...

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