Match Each Ratio That Follows to Its Use (Items A-H)

question 14

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-Ratio of liabilities to stockholders' equity

• A)Assess the profitability of the assets
• B)Assess how effectively assets are used
• C)Indicate the ability to pay current liabilities
• D)Indicate how much of the company is financed by debt and equity
• E)Indicate instant debt-paying ability
• F)Assess the profitability of the investment by common stockholders
• G)Indicate future earnings prospects
• H)Indicate the extent to which earnings are being distributed to common stockholders

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Definitions:

Stock Listing

The inclusion of a company's shares on a stock exchange where they can be bought and sold by investors.

P/E

The price-to-earnings ratio, measuring a company's current share price relative to its per-share earnings.

YTD% Chg

Year-To-Date Percentage Change, a financial metric indicating the percentage change in the value of an investment since the beginning of the current calendar year.

Obligatory Sinking Fund

A financial strategy in which a company sets aside money over time to retire its debt securities or preferred stock gradually, reducing default risk.