Which of the Following Ratios Would Be of Primary Importance

question 55

Multiple Choice

Which of the following ratios would be of primary importance to a manager in evaluating the success of a computerized collection process?

• A)Accounts receivable turnover
• B)Account payable turnover
• C)Quick ratio
• D)Return of equity

Evaluate the effects of leverage on return on equity (ROE) and the risk-return trade-off for shareholders.

Calculate and analyze the weighted average cost of capital (WACC) and its components.

Understand the effects of leverage on a firm's capital structure and shareholder's required returns.

Recognize the implications of capital structure decisions on a firm's valuation and the cost of capital.