Reference no: EM132958047
Problem 1: The debt to equity ratio measures
a. The proportion of creditor to stockholders' claims
b. The proportion of total assets financed by debt
c. The proportion of total assets financed by equity
d. The amount of income available for payment of interest
Problem 2: Earnings per share is calculated as
a. Net income less dividends on shares of common stock divided by number of shares of common stock outstanding.
b. Net income available to common stockholders divided by number of shares of common stock outstanding.
c. Net income divided by number of shares of common stock authorized.
d. Net income available to preferred stockholders divided by number of shares of preferred stock outstanding.
Problem 3: Vertical analysis involves
a. The calculation of percentage changes from a year over a base year
b. Restating the numbers in a financial statement in units
c. Converting financial statements to common size financial statements
d. None of the above