Multiple Choice
Why are leverage ratios important in overall financial analysis of a firm?
A) Low ROA can generate high ROE if the company is highly levered.
B) Use of leverage magnifies losses which increases risk.
C) Leverage ratios measure a firm's ROA.
D) High ROE can only be generated with high leverage.
Correct Answer:
Verified
Correct Answer:
Verified
Q54: In 2022, Voyage Company had earnings per
Q55: At the beginning of the year a
Q56: Financial ratios are used to perform an
Q57: Which one of the following is TRUE?<br>A)Fixed
Q58: The dividend payout ratio aids investors by:<br>A)providing
Q60: Two firms, STM and VPL, have the
Q61: Which of the following is NOT true?<br>A)The
Q62: Which of the following is true when
Q63: Which of the following best describes an
Q64: The following information has been obtained on