Which Two Ratios Would Be Most Helpful in Managing a Firm's

question 5

Multiple Choice

Which two ratios would be most helpful in managing a firm's capital structure?

• A) Book Debt to Equity, Current Ratio
• B) Debt to Value Ratio and Times Interest Earned
• C) Debt to Assets, Profit Margin
• D) Payables Turnover, Return on Assets

---

Definitions:

Advanced Directive

A legal document that specifies an individual's preferences regarding medical treatment in situations where they are unable to make decisions on their own.

Health Insurance Authorization

The process by which health insurance companies give approval for covered services or procedures, ensuring eligibility for payment.

Bedsores

Also known as pressure ulcers, these are injuries to skin and underlying tissue resulting from prolonged pressure on the skin.

Legal Authority

Refers to the legally delegated or invested power to enforce laws, exact obedience, or make decisions.