The equity multiplier is calculated as: Answer total assets divided by owners%u2

Question

The equity multiplier is calculated as: Answer

total assets divided by owners%u2019 equity
net income divided by owners%u2019 equity
net income divided by total assets
net sales divided by total assets

As part of the measurement of financial leverage, the total debt ratio is calculated as: Answer
total liabilities divided by total assets
total liabilities times total assets
current liabilities divided by total assets
total assets minus current liabilities divided by total liabilities divided by total liabilities

The price/earnings ratio (P/E) is calculated as: Answer
stock price divided by earnings per share
stock price times earnings per share
earnings per share divided by stock price
stock price divided by the difference between earnings per share and cash dividends per share
The extent to which assets are used to support sales is indicated by which of the following ratios: Answer
liquidity ratios
asset utilization ratios
financial leverage ratios
profitability ratios

Rental or lease payments are included in which one of the following ratios? Answer
interest coverage
times-interest-earned
fixed charge coverage
equity multiplier

In a perfect world, a firm would prefer to have a Answer
positive operating cycle.
negative operating cycle.
positive cash conversion cycle.
negative cash conversion cycle

Explanation / Answer

total assets divided by owners equity

total liabilities divided by total assets

stock price divided by earnings per share

asset utilization ratios.

financial leverage ratios

positive cash conversion cycle.

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