The relative proportion of debt, equity, and other securities that a firm has outstanding constitute its ..... A. capital structure B. retained earnings C. current ratio D. asset ratio O O

Q: What item flows from the statement of retained earnings to the balance sheet?a. Cashb. Dividendsc.…

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

Q: Which of the following is ratios represents dividends per common share in relation to market price…

A: The ratio represents dividend per common share in relation to Market price per common share is as…

Q: It indicates the proportion of debt in relation to resources provided by the owners, a. Debt…

A: Lets understand the basics. Debt to equity ratio is a ratio which compares how much proportionate…

Q: Return on Capiatal employed =  O a. Return on Total Assets  O b. Return on Equity  Oc. Return on…

A: Solution: Return on capital employed = EBIT/ Capital employed Capital employed = Total assets -…

Q: which of the following ratios indicate the proportion of earnings paid as dividends .a dividends…

A: dividend pay out formula: dividend payout =dividendnet income

Q: The term capital structure refers to_______   O a. Long-term debt, preferred stock, and common…

A: Capital structure is an important term used in financial management of the company. The answer is…

Q: are units of equity or ownership in a company. * O Stocks O Bonds

A: Company requires funding for their investment which can be obtained from broadly two sources.…

Q: Working Capital is a measure used to assess the liquidity of the company, computed as current assets…

A: The Answer is false Refer step2 for explanation

Q: formula for the following: 1. price earnings ratio 2. dividend yield ratio 3. dividend payout ratio…

A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: ne debt to O the F

A: The debt to asset ratio is a leverage ratio that measures the number of total assets that are…

Q: Which financial ratio measures a company's ability to pay its short-term obligations? a)…

A: A financial ratio is a quantitative relationship between two or more financial figures obtained from…

Q: Define Debt-to-equity ratio

A: Debt to equity ratio is an important ratio which is used by the companies in order to determine the…

Q: 5. How is the treasury share account presented in the Statement of Financial Position? a. deducted…

A: ANSWER ÷ (b) deducted from shareholder's equity

Q: 1. Definitions (S9.1-S9.3) Define the following terms: a. Cost of debt. b. Cost of equity. c.…

A: The company raises money through debt and equity and these are sources for long term finance for…

Q: What is equity multiplier ? a) Total Assets /Equity b) Equity / Net Sales c) Total Assets / Net…

A: The equity multiplier is a common ratio which is used in accounting and finance analyses. It is…

Q: leverage ratio is equal to average total …… divided by average…… Select one: a. assets; common…

A: Solution: leverage ratio = Average total debt / Average total common stpckholders' equity therefore,…

Q: Organize the following under Income Statement, Share Holder's Equity, and Balance Sheet. a.…

A: The financial statement is used for reporting the financial performance of the company over a…

Q: Comprehensive income includes the following except: A. revenues and gains B. expense and loss C.…

A: Comprehensive income  : Comprehensive income is the income of business which is the variation of…

Q: Retained earnings, as a form of equityfinancing, area. gross earnings.b. profits before taxes.c.…

A: Equity financing: It is a method to raise money for business operations and growth. Retained…

Q: The calculation of earnings and profits is used primarily to determine, which of the following: O a.…

A: Every company will try to increase the profitability from its operations. The company will earn…

Q: Lifo and weighted average methods are related to?

A: Answer:  A. Inventory valuation

Q: How does the return on common equity show the relationship between net income and the common…

A: The return on equity is the percentage earned on the equity investment made by the company. It shows…

Q: Structure: Describes the percentage breakdown of a firms’ assets vs. their debt (financing…

A: The capital structure is said to be funding source from which the whole capital is financed for the…

Q: Define each of the following terms:b. Common stockholders’ equity, or net worth; retained earnings

A: Common stockholders' equity or net worth: Common stockholders' equity or net worth is the capital…

Q: The required return on the debt   e.The required return on the company (i.e., stock and debt…

A: 1) Computed in Step 3 in main section- Required return=10%   2) Computed in Step 4 in main section-…

Q: Trading securities, by definition, are properly classified in the statement of financial position…

A: Statement of financial position is also known as balance sheet, which is prepared at the year-end to…

Q: What are the distributions to the stockholders by a firm called?  A. retained earnings B. net income…

A: Any Company Typically divides the Profits between itself to the company or it's stock holders.…

Q: Explain the following Investment ratios and indicate how they are computed: Earnings per share (EPS)…

A: Earnings per share (EPS) is ascertained as the benefit of an organization divided by outstanding…

Q: __________ securities are investments in preferred or common stock that represent ownership in a…

A: Definition of sources of finance: Companies can raise capital in two ways. 1 ) Debt 2 ) By issuing…

Q: What does the market value of debt and equity refer to? O A. The values at which debt and equity are…

A: Intrinsic value of an asset is the price which is determined based on the actual financial…

Q: Which financial ratio does the DuPont equation help to explain?     ROA (return on assets)…

A: The DuPont equation primarily helps to explain the Return on Equity (ROE). The equation breaks down…

Q: The ratio of liabilities to stockholders' equity measures how much of the company is financed by…

A: Since we answer up to 3 sub-parts, we'll answer the first 3. Please resubmit the question and…

Q: Define the terms paid-in capital and retained earnings.

A: Paid in capital: Paid in capital represents the total amount invested by the shareholders of the…

Q: Conclusion: Based on your findings on ratio analysis and interpretation, what conclusion can you…

A: Accounting ratios are the mathematical expressions between two figures taken for comparison. When…

Q: The proportions of debt and equity used to determine the weighted average cost of capital for the…

A: The answer for the True or false question and relevant explanation are presented hereunder :…

Q: How is leverage expressed in DuPont Ratio System? a) Total Debt / Equity b) Total Debt / Total…

A: Dupont ratio system is used to analysis the financial statements and assess its financial condition.…

Q: a. Gross profit margin. b. Operating profit margin. c. Net profit margin. d. Return on shareholders'…

A: In case of multiple subparts of a question, we are allowed to be solve only the first three…

Q: Which of the following ratios best measures the profitability of a company?

A: Gross margin, current ratio, and net operating asset turnover are all important ratios for analyzing…

Q: What does the book value of debt and equity refer to? O A. The par values of common stock and the…

A: The par value of stock is the price which is usually set at when the stock is issued. It is present…