Which of the Following Statements Is CORRECT

question 65

Multiple Choice

Which of the following statements is CORRECT?

• A) The ratio of long-term debt to total capital is more likely to experience seasonal fluctuations than is either the DSO or the inventory turnover ratio.
• B) If two firms have the same ROA,the firm with the most debt can be expected to have the lower ROE.
• C) An increase in the DSO,other things held constant,could be expected to increase the total assets turnover ratio.
• D) An increase in the DSO,other things held constant,could be expected to increase the ROE.
• E) An increase in a firm's total debt to total capital ratio,with no changes in its sales or operating costs,could be expected to lower its profit margin.

---

Definitions:

1980s

A decade characterized by significant political, technological, and cultural shifts, including the end of the Cold War, the rise of personal computers, and distinctive fashion and music styles.

Media

Various means of communication that reach or influence people widely, such as television, newspapers, and the internet.

Contemporary Feminists

Modern individuals or groups who advocate for gender equality and women's rights, reflecting current issues and societal trends.

Issues

Topics of concern or debate, often requiring attention, discussion, or resolution.