You Are Considering an Investment in General Motors Stock and Wish

question 43

Multiple Choice

You are considering an investment in General Motors stock and wish to assess the firm's long-term debt-paying ability and its use of debt financing.All of the following ratios can be used to assess solvency except:

• A)Number of times interest is earned.
• B)Net margin.
• C)Debt to equity ratio.
• D)Debt to assets ratio.

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Definitions:

Cues

External or internal signals that guide behavior or trigger emotional or physiological responses.

Internal Causes

Factors within a person, such as personal traits or motivations, that influence behavior.

Fundamental Attribution Error

The tendency to make attributions to internal causes when focusing on someone else’s behavior.

Behavior

The action or reaction of an entity (usually a person), in response to external or internal stimuli.