Quiz Ch 04 – T/F Leverage and ROE Relationship
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: To increase a firm’s ROE, leverage must be also increased.
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.
What assumptions can be made about Tri-C Corp. when comparing its ratios to industry averages, where it has a higher current ratio, an average quick ratio, and a lower inventory turnover?
What is the maximum rate at which Wei Bridal, a profitable firm with a dividend payout ratio of 25 percent and a constraint of not issuing additional equity shares or increasing long-term debt, can currently grow?