Which Ratio Would You Use to Measure the Financial Health

question 12

Multiple Choice

Which ratio would you use to measure the financial health of a firm by assessing that firm's leverage?

• A) debt-equity or equity multiplier ratio
• B) market-to-book ratio
• C) market debt-equity ratio
• D) current or quick ratio

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Definitions:

Diastolic Pressure

The lower measurement of blood pressure, indicating the pressure in the arteries when the heart rests between beats.

Expiration

The expulsion of air from the lungs in breathing.

Tachycardia

an abnormally fast heart rate, typically defined as having a resting heart rate of over 100 beats per minute.

Arrhythmia

A problem with the rate or rhythm of the heartbeat, causing it to be too fast, too slow, or irregular.