Quiz Ch 04 – Impact on ROE
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Which modification will result in an improvement in a firm’s Return on Equity (ROE)?
Which modification will result in an improvement in a firm’s Return on Equity (ROE)?
Given that a firm without any leases has a long-term debt ratio of 50%, what can be inferred about the book value of equity?
What does a cash ratio nearing 1.95 likely indicate for a company?
What does it indicate when a firm’s debt ratio surpasses 0.5?
What does it indicate when a firm’s quick ratio is equal to its current ratio?
What can be inferred about a firm with a 90-day average collection period?
Which is accurate when ROC falls below a firm’s cost of capital?
How can a firm’s asset management efficiency be improved?
What conclusion can be drawn if a company possesses a healthy current ratio but a significantly lower quick ratio?
What does it signify when a firm’s long-term debt-equity ratio is 0.98?