Theory: Page 1 of

_FINANCIAL_MANAGEMENT____________________________________________________________________________________________________________________
THEORY
Basic concepts 4. Which of the following is not revealed on a common size balance sheet?
1. When a balance sheet amount is related to an income statement amount A. The debt structure of a firm.
in computing a ratio, B. The capital structure of a firm.
A. Comparisons with industry ratios are not meaningful. C. The peso amount of assets and liabilities.
B. The balance sheet amount should be converted to an average for the D. The distribution of assets in which funds are invested.
year.
C. The income statement amount should be converted to an average for 5. In a set of comparative financial statements, you observed a gradual
the year. decline in the net of gross ratio, i.e., between net sales and gross sales. This
D. The ratio loses its historical perspective because a beginning-of-the-year indicates that:
amount is combined with an end-of-the-year amount. A. Sales volume is decreasing.
B. The discount period is being lengthened.
2. How are financial ratios used in decision making? C. There is adherence to the collection policies of the company.
A. They remove the uncertainty of the business environment. D. There is stiffening in the grant of discounts to the customers
B. They aren’t useful because decision making is too complex.
C. They give clear signals about the appropriate action to take. Horizontal analysis
D. They can help identify the reasons for success and failure in business, 6. Last year, a business had no long-term investments; this year long term
but decision making requires information beyond the ratios. investments amount to P100, 000. In a horizontal analysis the change in
long-term investments should be expressed as
Vertical analysis A. An absolute value of P100,000, and an increase of 100%
3. A useful tool in financial statement analysis is the common-size financial B. An absolute value of P100,000 and an increase of 1,000%
statement. What does this tool enable the financial analyst to do? C. An absolute value of P100,000 and no value for a percentage change
A. Ascertain the relative potential of companies of similar size in different D. No change in any terms because there was no investment in the
industries. previous year.
B. Evaluate financial statements of companies within a given industry of
approximately the same value. Liquidity ratios
C. Determine which companies in the same industry are at approximately 7. Which one of the following ratios would provide a best measure of
the same stage of development. liquidity?
D. Compare the mix of assets, liabilities, capital, revenue, and expenses A. Sales minus returns to total debt.
within a company over time or between companies within a given B. Total assets minus goodwill to total equity.
industry without respect to relative size. C. Net profit minus dividends to interest expense.
D. Current assets minus inventories to current liabilities.
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FINANCIAL STATEMENT ANALYSIS Page 1 of
8. Which ratio is most helpful in appraising the liquidity of current assets? 13. An investor has been given several financial ratios for an enterprise but
A. Accounts receivable turnover. C. Current ratio. none of the financial reports. Which combination of ratios can be used to
B. Acid-test ratio. D. Debt ratio derive return on equity?
A. Price-to-earnings ratio and return-on-assets ratio.
Activity ratios B. Net profit margin, total assets turnover, and equity multiplier.
9. C. Market-to-book-value ratio and total-debt-to-total-assets ratio.
A. Asset turnover. C. Days' sales in receivables. D. Price-to-earnings ratio, earnings per share, and net profit margin.
B. Days' sales in inventory. D. Sales to working capital.
Ratio analysis
Profitability ratios 14. North Bank is analyzing Belle Corp.’s financial statements for a possible
10. Which of these ratios are measures of a company’s profitability? extension of credit. Belle’s quick ratio is significantly better than the
1. Earnings per share 5. Return on assets industry average. Which of the following factors should North consider as
2. Current ratio 6. Inventory turnover possible limitation of using this ratio when evaluating Belle’s
3. Return on sales 7. Receivables turnover creditworthiness?
4. Debt-equity ratio 8. Price-earnings ratio A. Belle may need to liquidate its inventory to meet its long-term
A. 1, 3, and 5 only B. 1, 3, 5, and 8 only. obligations.
C. 1, 3, 5, 6, 7, and 8 only. D. All eight ratios. B. Increasing market prices for Belle’s inventory may adversely affect the
ratio.
11. The ratio of analytical measurements which measures the productivity of C. Fluctuating market prices of short-term investments may adversely
assets regardless of capital structure is affect the ratio.
A. Current ratio. C. Quick (acid test) ratio. D. Belle may need to sell its available-for-sale investments to meet its
B. Debt ratio. D. Return on total assets. current obligations.
Market-test ratios 15. In comparing the current ratios of two companies, why is it invalid to
12. How are the following used in the calculation of the dividend-pay-out ratio assume that the company with the higher current ratio is the better
for a company with only common stock outstanding? company?
A B C D A. The current ratio includes assets other than cash.
Dividends per share Denominator Denominator Numerator Numerator B. A high current ratio may indicate inadequate inventory on hand.
Earnings per share Numerator Not used Denominator Not used C. The two companies may define working capital in different terms.
Book value per share Not used Numerator Not used Denominator
D. A high current ratio may indicate inefficient use of various assets and
liabilities.
Integrated ratios
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16. A company’s current ratio is 2.2 to 1 and the quick ratio is 1.0 to 1 at the A. The firm is not profitable.
beginning of the year. At the end of the year, the company has a current B. The firm is undercapitalized.
ratio of 2.5 to 1 and a quick ratio of 0.8 to 0.1. Which of the following C. Working capital is not profitably utilized.
could help explain the divergence in the ratios from the beginning to the D. The firm is likely to have liquidity problems.
end of the year?
A. An increase in inventory levels during the year. 21. When compared to a debt-to-assets ratio, a debt-to-equity ratio would
B. An increase in credit sales in relationship to sales A. Be lower than the debt-to-assets ratio.
C. An increase in the use of payables during the current year. B. Be higher than the debt-to-assets ratio.
D. An increase in the use of payables during the current year. C. Be about the same as the debt-to-assets ratio.
D. Have no relationship at all to the debt-to-assets ratio.
17. If the ratio of total liabilities to equity increases, a ratio that must also
increase is 22. You observe that a firm’s profit margin and debt ratio are below the
A. Return on equity. B. The current ratio. industry average, while its return on equity exceeds the industry average.
B. Times interest earned. D. Total liabilities to total assets. What can you conclude?
A. Return on assets is above the industry average.
18. The market value of a firm's outstanding common shares will be higher, B. Total assets turnover is below the industry average.
everything else equal, if C. Total assets turnover is above the industry average.
A. Investors expect lower dividend growth. D. Statements A and C are correct
B. Investors have longer expected holding periods.
C. Investors have a lower required return on equity. 23. The following situations are descriptive of SBD Corporation. Which would
D. Investors have shorter expected holding periods. be considered as the most favorable for the common stockholders?
A. Equity ratio is low; return on assets exceeds the cost of borrowing.
19. In a comparison of 1992 to 1991, Neir Co.’s inventory turnover ratio B. Equity ratio is high; return on assets exceeds the cost of borrowing.
increased substantially although sales and inventory amounts were C. SBD stops paying dividends on its cumulative preferred stock; the price-
essentially unchanged. Which of the following statements explains the earnings ratio of common stock is low.
increased inventory turnover ratio? D. Book value per share of common stock is substantially higher than
A. Cost of goods sold decreased. market value per share; return on common stockholders’ equity is less
B. Total asset turnover increased. than the rate of interest paid to creditors.
C. Gross profit percentage decreased.
D. Accounts receivable turnover increased. 24. The company issued new common shares in a three-for-one stock split.
Identify the statements that indicate the correct effect(s) of this
20. Minix Co. has a high sales-to-working-capital ratio. This could indicate transaction.
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A. It reduced equity per share of common stock.

B. The peso amount of capital stock is increased. 29. Mabuhay Corp. has current assets of P180, 000 and current liabilities of
C. Share of each common stockholder is reduced. P360, 000. Which of the following transactions would improve Mabuhay’s
D. Working capital and current ratio are increased. current ratio?
A. Paying P40, 000 of short-term accounts payable.
Sensitivity analysis B. Collecting P20, 000 of short-term accounts receivable.
25. If a transaction causes total liabilities to decrease but does not affect the C. Refinancing a P60, 000 long-term mortgages with a short-term note.
owners’ equity, what change if any, will occur in total assets? D. Purchasing P100, 000 of merchandise inventory with short-term
A. Assets will be decreased. accounts payable.
B. No change in total assets.
C. Assets will be increased. 30. A company has a current ratio of 2 to 1. The ratio will decrease if the
D. None of the above. company
A. Borrow cash on a six-month note.
26. Which of the following actions will increase a company’s quick ratio? B. Pays a large account payable which had been a current liability.
A. Issue equity and use the proceeds to purchase inventory. C. Receives a 5% stock dividend on one of its marketable securities.
B. Issue short-term debt and use the proceeds to purchase inventory. D. Sells merchandise for more than cost and records the sale using the
C. Reduce inventories and use the proceeds to reduce long-term debt. perpetual inventory method.
D. Issue long-term debt and use the proceeds to purchase fixed assets.
E. Reduce inventories and use the proceeds to reduce current liabilities. 31. Recording cash dividend payment when declaration was recorded earlier
would
27. On December 31, 1991, Northpark Co. collected a receivable due from a A. Increase both current ratio and working capital
major customer. Which of the following ratios would be increased by this B. Decreases both current ratio and working capital
transaction? C. Have no effect on current ratio or earnings per share
A. Current ratio. C. Quick ratio. D. Increase current ratio but no effect on working capital.
B. Inventory turnover ratio. D. Receivable turnover ratio.
32. ABC Corporation has a current ratio of 2 to 1 and a quick ratio (acid test)
28. Jack & Sons, Inc. has a 2 to 1 acid test (quick) ratio. This ratio would of 1 to 1. A transaction that would change Bond's quick ratio but not its
decrease to less than 2 to 1 if the company current ratio is the
A. Paid an account payable. A. Payment of accounts payable.
B. Collected an account receivable. B. collection of accounts receivable
C. Purchased inventory on open account. C. sale of inventory on account at cost
D. Sold merchandise on open account that earned a normal gross margin. D. sale of short-term marketable securities for cash that results in a profit
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37. 37. A company issued long-term bonds and used the proceeds to
33. If, just prior to the period of rising prices, a company changed its inventory repurchase 40% of the outstanding shares of its stock. This financial
measurement from FIFO to LIFO, the effect in the next period would be to transaction will likely cause the
A B C D A. Current ratio to decrease.
Book value per share Increase No effect Decrease Decrease B. Fixed charge coverage ratio to increase.
Earnings per share Increase Increase Increase Decrease C. Times-interest-earned ratio to decrease.
34. Assume that a company's debt ratio is currently 50%. It plans to purchase D. Total assets turnover ratio to increase.
fixed assets either by using borrowed funds for the purchase or by
entering into an operating lease. The company's debt ratio as measured Comprehensive
by the balance sheet will A. Increase whether the assets are purchased or 38. 38. All of the following statements are valid except
leased. B. Remain unchanged whether the assets are purchased or leased. A. The inventory turnover is computed by dividing sales by average
C. Increase if the assets are purchased, and decrease if the assets are inventory.
leased. D. Increase if the assets are purchased, and remain unchanged if B. The results of financial statements analysis are of value only when
the assets are leased. viewed in comparison with the results of other periods or other firms.
35. 35. What would be the effect on book value per share and earnings per C. If the return on total assets is higher than the after-tax cost of long-term
share if the corporation purchased its own shares in the open market at a debt, then leverage is positive, and the common stockholders will
price greater than book value per share? benefit.
A B C D D. The short term creditor is more interested in cash flows and in working
Book value per share Increase No effect Decrease Decrease capital management that he is in how much accounting net income is
Earnings per share Increase Increase Increase Decrease
reported.
36. 36. Which of the following statements is correct? PROBLEMS

A. A high quick ratio is always a good indication of a well-managed liquidity Basic concepts
position. a. A service company's working capital at the beginning of
B. A high degree of operating leverage lowers the risk by stabilizing the January of the current year was $70,000. The following
firm’s earnings stream. transactions occurred during January:
C. A relatively low return on assets (ROA) is always an indicator of
managerial incompetence. Performed services on account $30,000
D. An increase in a firm’s inventories will call for additional financing unless Purchased supplies on account 5,000
the increase is offset by an equal or larger decrease in some other asset Consumed supplies 4,000
account. Purchased office equipment for cash 2,000
Paid short-term bank loan 6,500
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Paid salaries 10,000 5. During 1989, Rand Co. purchased $960,000 of inventory. The cost of goods
Accrued salaries 3,500 sold for 1989 was $900,000, and the ending inventory at December 31, 1989
What is the amount of working capital at the end of January? was $180,000. What was the inventory turnover for 1989?
A. $47,500 C. $80,500 A. 5.0 C. 6.0
B. $50,500 D. $90,000 B. 5.3 D. 6.4
Vertical analysis Solvency ratios

39. 2. The net sales of Grand Manufacturing Co. in 1990 is total, P580,600. 6. Alumbat Corporation has $800,000 of debt outstanding, and it pays an
The cost of goods manufactured is P480, 000. The beginning inventories of interest rate of 10 percent annually on its bank loan. Alumbat’s annual sales
goods in process and finished goods are P82, 000 and P65, 000, are $3,200,000, its average tax rate is 40 percent, and its net profit margin on
respectively. The ending inventories are, goods in process, P75, 000, sales is 6 percent. If the company does not maintain a TIE ratio of at least 4
finished goods, P55, 000. The selling expense is 5%, general and times, its bank will refuse to renew its loan, and bankruptcy will result. What
administrative expenses 2.5% of cost of sales, respectively. The net profit is Alumbat’s current TIE ratio?
in the year 1990 is A. 2.4 C. 3.6
A. P45, 725 C. P83, 000 B. 3.4 D. 5.0
B. P53, 850 D. P90, 000
Horizontal analysis 7. What would be a company’s “times interest earned ratio” if interest paid on
3. In 19x5, MPX Corporation’s net income was P800, 000 and in 19x6 it was loans amount to P9, 000 and its net income after income tax is P99,000.
P200, 000. What percentage increase in net income must MPX achieve in 19x7 (Assume a 25% income tax rate on first P100, 000 of income and 35% income
to offset the 19x6 decline in net income? tax rate on income in excess of P100, 000.)
A. 60% C. 400% A. 10 times C. 13 times
B. 300% D. 600% B. 12 times D. 16.21 times
Activity ratios 8. Manufacturer’s Inc. estimates that its interest charges for this year will be
4. Blasso Co.’s net accounts receivable were $500,000 at December 31, 2000 $700 and its net income will be $3,000. Assuming its average tax rate is 30
and $600,000 at December 31, 2001. Net cash sales for 2001 were $200,000. percent, what is the company’s estimated times interest earned ratio?
The accounts receivable turnover for 2001 was 5.0. What were Blasso’s total A. 2.40 C. 5.33
net sales for 2001? B. 4.25 D. 7.12
A. $2,950,000 C. $3,200,000
B. $3,000,000 D. $5,500,000 Profitability ratios
9. The average stockholders’ equity for ABC Company for 2000 was
P2,000,000. Included in this figure is P200, 000 par value of 8% preferred
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stock, which remained unchanged during the year. The return on common Preferred dividends 200,000
shareholders’ equity was 12.5% during the 2000. How much was the net Payout ratio 40%
income of the company in 2000? Shares outstanding throughout 2003
A. P234,000 C. P250,000 Preferred 20,000
B. P241,000 D. P225,000 Common 35,000
Income tax ratio 40%
Market-test ratios Price earnings ratio 5 times
10. Ehrenburg Co. had net income of $5.3 million and earnings per share of The dividend yield ratio is:
common stock of $2.50. Included in the net income was $500,000 of bond A. 0.08 C. 0.40
interest expense related to its long-term debt. The income tax rate was 50%. B. 0.12 D. 0.50
Dividends on preferred stock were $300,000. The dividend payout ratio on
common stock was 40%. What were the dividends on common stock? 14. Last year, Quayle Energy had sales of $200 million and its inventory
A. $1,800,000 C. $2,000,000 turnover ratio was 5.0. The company’s current assets totaled $100 million and
B. $1,900,000 D. $2,120,000 its current ratio was 1.2. What was the company’s quick ratio?
A. 0.55 C. 1.20
B. 0.72 D. 1.39
Integrated ratios 15. Beatnik Company has a current ratio of 2.5 and a quick ratio of 2.0. If the
11. The working capital of Regalado Co. is P600, 000 and its current ratio is 3 firm experienced $2 million in sales and sustains an inventory turnover of 8.0,
to 1. The amount of current assets is what are the firm's current assets?
A. P600, 000 C. P1, 200, 000 A. $500,000 C. $1,250,000
B. P900, 000 D. P1, 800, 000 B. $1,000,000 D. $1,500,000
12. India Oats pays dividends of $0.62 per quarter, and has annual earnings 16. Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal
per share of $2.80. What is India Oats's dividend yield and dividend payout to 1.2. The company has $2 million in sales and its current liabilities are $1
ratio for 2000, respectively, if its recent market price is $30.00 and its average million. What is the company’s inventory turnover ratio?
market price was $28.00? A. 5.0 C. 5.5
A. 8.27% and 22.1%. C. 8.86% and 22.1%. B. 5.2 D. 6.0
B. 8.27% and 88.6%. D. 8.86% and 88.6%.
17. Perry Technologies Inc. had the following financial information for the past
13. The following were reflected from the records of War Freak Company: year:
Earnings before interest and taxes P1, 250,000 Sales $860,000 Inventory turnover 8x
Interest expense 250,000 Quick ratio 1.5 Current ratio 1.75
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What were Perry’s current liabilities? asset turnover ratio, along with the 15% profit margin, is required to double
A. $ 61,429 C. $430,000 the return on assets?
B. $107,500 D. $500,000 A. 35% C. 45%
B. 40% D. 50%
18. Taft Technologies has the following relationships:
Annual sales $1,200,000 Inventory turnover ratio 4.8 22. Selected information from the accounting records of the Blackwood Co. is
Current liabilities $ 375,000 Current ratio 1.2 as follows:
Days sales outstanding (DSO) 40 (360-day year) Net A/R at December 31, 2000 $ 900,000
The company’s current assets consist of cash, inventories, and accounts Net A/R at December 31, 2001 $1,000,000
receivable. How much cash does Taft have on its balance sheet? Accounts receivable turnover 5 to 1
A. -$ 8,333 C. $125,000 Inventories at December 31, 2000 $1,100,000
B. $ 66,667 D. $200,000 Inventories at December 31, 2001 $1,200,000
Inventory turnover 4 to 1
19. An enterprise has total asset turnover of 3.5 times and a total debt to total What was the gross margin for 2001?
assets ratio of 70%. If the enterprise has total debt of $1,000,000, it has a A. $150,000 C. $300,000
sales level of B. $200,000 D. $400,000
A. $200,000.00 C. $2,450,000.00 23. Watson Corporation computed the following items from its financial
B. $408,163.26 D. $5,000,000.00 records for the year just ended:
Price-earnings ratio 12
20. The Intelinet Corporation and Comp Inc. have assets of $100,000 each and Payout ratio .6
a return on common equity of 17%. Intelinet has twice the debt of Comp Inc., Asset turnover .9
while Comp has half the sales of Intelinet. If Intelinet has net income of The dividend yield on Watson's common stock is
$10,000 and a total assets turnover ratio of 3.5, what is Comp Inc.'s profit A. 5.0% C. 7.5%
margin? B. 7.2% D. 10.8%
A. 3.31% C. 10.00%
B. 7.71% D. 13.50% 24. Assume Meyer Corporation is 100 percent equity financed. Calculate the
return on equity, given the following information:
21. JC Goods, Inc. has a total assets turnover of 0.30 and a profit margin of (1) Earnings before taxes = $1,500
10%. The president is unhappy with the current return on assets, and he (2) Sales = $5,000
thinks it could be doubled. This could be accomplished (1) by increasing the (3) Dividend payout ratio = 60%
profit margin to 15% and (2) by increasing total assets turnover. What new (4) Total assets turnover = 2.0
(5) Tax rate = 30%
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A. 25% C. 35% $20.00 30. Earnings per share amount to P10 and the price earnings ratio is 5.
B. 30% D. 42% If the dividend yield is 8%,
A. The dividend is P4 per share.
25. Shepherd Enterprises has an ROE of 15 percent, a debt ratio of 40 percent, B. Market price of the stock must be P40.
and a profit margin of 5 percent. The company’s total assets equal $800 C. The amount of dividend cannot be determined.
million. What are the company’s sales? (Assume that the company has no D. Market value of the stock cannot be determined.
preferred stock.)
A. $ 360,000,000 C. $1,440,000,000 31. Selected data from the year-end financial statements of World Cup Corp.
B. $ 960,000,000 D. $2,400,000,000 are presented below.
The difference between average and ending inventories is immaterial.
26. A fire has destroyed many of the financial records of R. Son & Co. You are Current ratio 2.0
assigned to put together a financial report. You have found the return on Quick ratio 1.5
equity to be 12% and the debt ratio was 0.40. What was the return on assets? Current liabilities P600, 000
A. 5.35% C. 7.20% Inventory turnover (based on cost of sales) 8 times
B. 6.60% D. 8.40% Gross profit margin 40%
27. A firm has total assets of $1,000,000 and a debt ratio of 30 percent. World’s net sales for the year were
Currently, it has sales of $2,500,000, total fixed costs of $1,000,000, and EBIT A. P1.2 million C. P4.0 million
of $50,000. If the firm’s before-tax cost of debt is 10 percent and the firm’s tax B. P2.4 million D. P6.0 million
rate is 40 percent, what is the firm’s ROE?
A. 1.7% C. 6.0% 32. The following ratios and data were computed from the 1997 financial
B. 2.5% D. 8.3% statements of Star Co.:
Current ratio 1.5
28. A firm has a debt/equity ratio of 50 percent. Currently, it has interest Working capital P20, 000
expense of $500,000 on $5,000,000 of total debt outstanding. Its tax rate is 40 Debt/equity ratio .8
percent. If the firm’s ROA is 6 percent, by how many percentage points is the Return on equity .2
firm’s ROE greater than its ROA? If net income for 1997 is P40,000, the balance sheet at the end of 1997 total
A. 0.0% C. 5.2% assets of
B. 3.0% D. 7.4% A. P300, 000 C. P360, 000
B. P340, 000 D. P400, 000
29. Given the following information, calculate the market price per share of
WAM Inc. Net income = $200,000 Earnings per share = $2.00 Stockholders’ 33. Selzer Inc. sells all its merchandise on credit. It has a profit margin of 4
equity = $2,000,000 Market/Book ratio = 0.20 A. $ 2.00 C. $ 8.00 B. $ 4.00 D. percent, days sales outstanding equal to 60 days, receivables of $150,000,
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total assets of $3 million, and a debt ratio of 0.64. What is the firm’s return on Debt ratio: 40.0% Total assets turnover: 3.0
equity (ROE)? Assume a 360-day year. Profit margin: 6.0% Tax rate: 40%
A. 3.3% C. 8.1% What is Lone Star’s EBIT?
B. 7.1% D. 33.3% A. $12,000 C. $30,000
B. $18,000 D. $33,200
34. Kansas Office Supply had $24,000,000 in sales last year. The company’s
net income was $400,000, its total assets turnover was 6.0, and the 38. Lombardi Trucking Company has the following data: Assets: $10,000
company’s ROE was 15 percent. The company is financed entirely with debt Interest rate: 10.0% Debt ratio: 60.0% Total assets turnover: 2.0 Profit margin:
and common equity. What is the company’s debt ratio? 3.0% Tax rate: 40% What is Lombardi’s TIE ratio? A. 0.95 C. 2.10 B. 1.75 D.
A. 0.20 C. 0.33 2.67 39. The Meryl Corporation’s common stock is currently selling at $100
B. 0.30 D. 0.60 per share, which represents a P/E ratio of 10. If the firm has 100 shares of
common stock outstanding, a return on equity of 20 percent, and a debt ratio
35. Last year, Thomas Lumber Co. had a profit margin of 10 percent, total of 60 percent, what is its return on total assets (ROA)? A. 8.0% C. 12.0%
assets turnover of 0.5, and a debt ratio of 20 percent. (The company finances
its assets with debt and common equity; it does not use preferred stock.) This
year, the company’s CFO wants to double ROE. She expects the total assets
turnover will remain at 0.5, while the profit margin and debt ratio will increase
enough to double ROE. Assume that the profit margin is increased to 15
percent, what debt ratio will the company need in order to double its ROE?
A. 0.30 C. 0.40
B. 0.33 D. 0.45
36. Deb & Co. has a debt ratio of 0.50, a total assets turnover of 0.25, and a
profit margin of 10%. The president is unhappy with the current return on
equity, and he thinks it could be doubled. This could be accomplished (1) by
increasing the profit margin to 14% and (2) increasing debt utilization. Total
assets turnover will not change. What new debt ratio, along with the 14%
profit margin, is required to double the return on equity?
A. 0.55 C. 0.70
B. 0.65 D. 0.75
37. Lone Star Plastics has the following data:
Assets: $100,000 Interest rate: 8.0%
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_FINANCIAL_MANAGEMENT____________________________________________________________________________________________________________________

A. It reduced equity per share of common stock.

36. 36. Which of the following statements is correct? PROBLEMS

Vertical analysis Solvency ratios

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