Leverage measure and about common stock

Assignment Help Financial Management

Reference no: EM13762927

1. Which one of the following statements about common stock is true?

A) Common stock can provide attractive capital appreciation opportunities.

B) Dividends generally provide the greatest rate of return on common stocks.

C) Common stocks generally have a negative rate of return over a ten-year period.

D) The DJIA is the best indicator of the overall performance of common stocks.

2. Substituting EBITDA for EBIT when computing the times interest earned ratio will make the company appear

A) more leveraged.

B) less leveraged.

C) more profitable.

D) less efficient.

3. Nadine Enterprises has total assets of $240,000, a debt-equity ratio of 0.60, and a return on assets of 9%. What is the return on equity?

A) 5.4%

B) 5.6%

C) 14.4%

D) 15.0%

4. Which one of the following is a leverage measure?

A) times interest earned

B) net working capital

C) return on equity

D) net profit margin

Reference no: EM13762927

Questions Cloud

Assume no other income and taxes during retirement : Amanda is expected to receive full social security retirement benefit of $15500 annually when she turns 65. These benefits can be increased by 40% if she delays taking them till age 70. If her life expectancy is 90 years and expected rate of return i..

Excel for decision support modeling : Willy Wonka is considering starting a production line to produce fizzy lifting drinks. As Chief Oompa Loompa (COL) you have access to a wide variety of financial data to help you determine whether bringing the new production line on will be a sma..

Program takes input from a user in the form of a phrase : This program takes input from a user in the form of a phrase. It then converts the phrase to ig latin.

Define a structure type : Define a structure type to represent a single CD. The year must be stored as an integer, all other fields should be strings. Because memory space will be an issue you may not assume a length for the string fields, but must dynamically allocate app..

Leverage measure and about common stock : Which one of the following statements about common stock is true? Substituting EBITDA for EBIT when computing the times interest earned ratio will make the company appear. Which one of the following is a leverage measure?

Current labor cost per car sold : Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople's productivity. Currently, each salesperson sells an average of one car per day while being paid $20 per hour for an eight-hour day.

The causes of nursing home death : What are some of the causes of nursing home deaths?

Compute the combined worth of steves retirement assets : Steve is about to retire and wants to calculate the total worth of his retirement assets. He has a corporate pension paying $2250 at the beginning of every month. He is also entitled for Social Security benefits of $1450 at the beginning of every mon..

An exchange traded fund that invests in the stocks : An exchange traded fund that invests in the stocks of large corporations is an example of

User Account

All Pages