The Public Utility Holding Company Act of 1935 Requires That

question 58

Multiple Choice

The Public Utility Holding Company Act of 1935 requires that public utility and holding companies .

• A) set rates as low as possible without sacrificing a reasonable profit
• B) register with the Securities and Exchange Commission and disclose information about their finances and operations
• C) notify the Environmental Protection Agency before building new power facilities
• D) elect board members at annual elections

Evaluate short-term credit risk and profitability using financial ratios.

Understand the concept and application of financial statement analysis for business decisions.

Recognize the tools and standards used for financial statement analysis including comparative statements and common-size analysis.

Calculate and interpret return on total assets, return on ordinary shareholders' equity, basic earnings per share, price earnings ratio, and dividend yield.