Which of the following is/are true?
a. The more long-term debt in a firm's capital structure, the less the risk that the firm will experience difficulty making the required payments when due.
b. The more long-term debt in a firm's capital structure, the less is the risk of default or bankruptcy.
c. Financial analysts use the long-term debt ratio to assess risk related to long-term borrowing.
d. The debt-equity ratio relates short-term debt to shareholders' equity, indicating the relative mix of short-term financing obtained from lenders versus owners.
e. none of the above
C
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Which of the following will an auditor not perform when looking for additions to debt?
a. Trace the proceeds into the cash receipts records. b. Examine canceled notes. c. Obtain assurance regarding board approval of the debt through review of board meeting minutes d. Trace the proceeds into the bank statement.
Tactical planning usually involves which level of management?
a. middle b. top c. middle and top d. operational
Consider the following two-person game. The payoff for X is given in the table. X will always play strategy
Y1 Y2 X1 4 6 X2 1 -3 A) X1. B) X2. C) Y1. D) Y2. E) Not enough information given
You are considering investing in a project with the following year-end after-tax cash flows:
Year 1: $57,000 Year 2: $72,000 Year 3: $78,000 If the initial outlay for the project is $185,000, compute the project's internal rate of return. A) 3.98% B) 5.54% C) 14.74% D) 11.89%