Ratio Analysis Paper 7

1

Everything else being equal, a highly leveraged firm will have earnings per share.
List A
List B






2

If the ratio of total liabilities to equity increases, a ratio that must also increase is






3

A measure of long-term debt-paying ability is a companyís






4

All of the following financial indicators are measures of liquidity and activity except the






5

A bondholder would be most concerned with which one the following ratios?






6

In general, as a company increases the amount of short-term financing relative to long-term financing, the






7

Which one of the following factors would likely cause a firm to increase its use of debt financing as measured by the debt to total capital ratio?






8

Which of the outcomes represented in the following table would result from a companyís retirement of debt with excess cash?
Total Assets Turnover Ratio
Following Periodís Times Interest Earned Ratio






9

A company issued long-term bonds and used the proceeds to repurchase 40% of the outstanding shares of its stock. This financial transaction will likely cause the






10

Stanford Company leased some special-purpose equipment from Vincent, Inc., under a long-term lease that was treated as an operating lease by Stanford. After the financial statements for the year had been issued, it was discovered that the lease should have been treated as a capital lease by Stanford. All of the following measures relating to Stanford would be affected by this discovery except the






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