For a Given Level of Profitability as Measured by Profit

question 9

Multiple Choice

For a given level of profitability as measured by profit margin, the firm's return on equity will

• A) increase as its debt-to-assets ratio decreases.
• B) decrease as its current ratio increases.
• C) increase as its debt-to-assets ratio increases.
• D) decrease as its times-interest-earned ratio decreases.

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Definitions:

Chef

A professional cook, often the head of a kitchen, who is responsible for preparing meals in restaurants or other establishments.

Intangibility

A characteristic of services that makes them unable to be seen, touched, or quantified before they are bought and used.

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Medical professionals specialized in diagnosing, preventing, and treating diseases and conditions of the oral cavity.

Uncomfortable

A state of physical or mental discomfort or unease.