Pre-Test

A Manager’s Guide to Financial Analysis

Sixth Edition

Course Code 95084

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1.  The short-term lenders of a firm would be most interested in looking at_______________ ratios.

(a)  profitability

(b)  liquidity

(c)  activity

(d)  leverage

2.  An increasing debt-to-equity ratio indicates that the:

(a)  level of stockholders’ equity is increasing in relation to debt.

(b)  level of debt is increasing in relation to stockholders’ equity.

(c)  level ...

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