One way of measuring the advantage of financial leverage to the owners of the company is ________
A) to examine the earnings per share (EPS) of a company before borrowing from debt lenders
B) to examine the earnings per share (EPS) of a company after borrowing from debt lenders
C) to examine the dividends per share (DPS) of a company before and after borrowing from debt lenders
D) to examine the earnings per share (EPS) of a company before and after borrowing from debt lenders
Answer: D
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A bank with transaction deposits totaling $45 million had reserves equal to $0.98 million. The reserve requirement for this bank is _____ percent. (Hint: use the cutoff amounts as per the reserve requirements for the year 2013)
A. 10 B. 8 C. 3 D. 2
On November 1, 2018, A-1 Products borrowed $64,000 on a 5%, 5-year note with annual installment payments of $12,800 plus interest due on November 1 of each succeeding year. On November 1, 2020, what is the balance of the Long-Term Notes Payable account? (Round your answer to nearest whole number.)
A) $38,400 B) $64,000 C) $51,200 D) $12,800
A database maintained by the InterNIC contains all the domain names that have been registered
Indicate whether the statement is true or false
You are considering an investment in IBM stock and wish to assess the firm's long-term debt-paying ability and its use of debt financing. All of the following ratios can be used to assess solvency except:
A. Number of times interest is earned. B. Net margin. C. Debt to assets ratio. D. Debt to equity ratio.