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Author Question: Other things held constant, a decrease in sales and a simultaneous decrease in financial leverage ... (Read 177 times)

lingual

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on: Aug 7, 2023

Question 1

One problem with ratio analysis is that relationships can be manipulated. For example, if the current ratio is 1.8, then using some cash to pay off some current liabilities would cause the current ratio to increase and thus make the firm look stronger.

◦ true
◦ false

Question 2

Other things held constant, a decrease in sales and a simultaneous decrease in financial leverage must result in a higher profit margin.

◦ true
◦ false
Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by lingual on Aug 7, 2023

LynellDool

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    • i thought about discounts
Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lingual

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Reply 2 on: Aug 7, 2023
Gracias!

JaynaD87

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Reply 3 on: Yesterday
Wow, this really help

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