Quiz Ch 04 – Cost of Capital and Calculation of Financial Measures
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
How does the cost of capital impact the calculation of which financial measure?
How does the cost of capital impact the calculation of which financial measure?
The current ratio is often used as an effective representation of which aspect of a firm?
What does an asset’s liquidity primarily indicate?
What does the inventory turnover ratio analyze in relation to inventory?
What action will certainly raise a firm’s Return on Equity (ROE) when the Return on Assets (ROA) is presently 10% and the leverage ratio is 1?
What factor will lead to a decrease in the NWC turnover ratio, assuming all other factors remain constant?
What primarily contributes to the potential distortion in comparing the ROA of different firms when net income is employed in the numerator?
Which will NOT impact the cash coverage ratio when increased?
With BDS’s acquisition of its primary supplier, ABC, resulting in an increased profit margin but a constant ROA, which ratio is most likely to have decreased, causing the ROA NOT to rise alongside the higher profit margin?
Which action will result in an elevation of a firm’s times interest earned ratio?