Quiz Ch 04 – T/F Bond Conversion Impact on Times Interest Earned
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: The conversion of bonds into equity by bondholders leads to increased interest earned.
True or false: The conversion of bonds into equity by bondholders leads to increased interest earned.
True or false: Net working capital is derived by subtracting current liabilities from current assets.
True or false: Efficiency ratios cover the asset turnover ratio and inventory turnover ratio.
True or false: Both net working capital to total assets and current ratio are categorized as liquidity ratios.
True or false: Both return on assets and return on equity are categorized as profitability ratios.
True or false: EVA is the firm’s adjusted net profit, accounting for the cost of capital.
True or false: The net working capital of a company will decline when outstanding supplier bills are settled with cash.
True or false: To increase a firm’s ROE, leverage must be also increased.
True or false: When interest expense is high, the interest earned ratio is also high.
True or false: Amortization refers to the diminishing value of intangible assets over time.