For Each of the Ratios Listed Below, Indicate by the Appropriate

question 39

Essay

For each of the ratios listed below, indicate by the appropriate code letter, whether it is a liquidity ratio (L), a profitability ratio (P), or a solvency ratio (S).
____ 1. Times interest earned ratio
____ 2. Asset turnover
____ 3. Receivables turnover
____ 4. Debt to total assets ratio
____ 5. Current ratio
____ 6. Payout ratio

---

Definitions:

Underpricing

The practice of setting the initial offering price of a security, typically shares, below its market value, which often leads to a first-day surge in its stock price.

IPO

Initial Public Offering, the process by which a private company becomes publicly traded by offering its shares for the first time to the public.

Seasoned Equity Offering

When a company with publicly traded shares issues additional shares. Also known as a “secondary” or “follow-on” offering.

Primary Market

The primary market is the financial market where new securities are issued and sold for the first time, directly from the issuer.