An Increase in Which of the Following Ratios Is Considered

question 37

Multiple Choice

An increase in which of the following ratios is considered unfavorable?

• A) Cash flow yield
• B) Current ratio
• C) Price/earnings (P/E)ratio
• D) Debt to equity ratio

Understand the impact of time on the growth of investments and savings.

Calculate the present value of future cash flows at a given discount rate.

Understand and apply the concept of annual increase in value (such as property or collectibles) to determine future value.

Calculate how much more (or less) needs to be invested today to achieve the same future value under different rates.

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Definitions:

Hypothalamus

The hypothalamus is a crucial brain region involved in regulating various bodily functions, including temperature, hunger, thirst, emotions, and circadian rhythms.

Amygdala

An almond-shaped set of neurons located deep in the brain's medial temporal lobe, involved in memory, decision-making, and emotional responses.

Orbitofrontal Cortex

The orbitofrontal cortex is a prefrontal cortex region involved in the cognitive processing of decision-making, emotion regulation, and sensory integration, influencing social behavior and reward.

Insula

Multifunctional cortical tissue located within the lateral fissure; contains language and taste perception–related regions and neural structures underlying social cognition.