Which of the following statements (in general) is correct? – McqOptions

MCQOPTIONS

1.	Which of the following statements (in general) is correct?
A.	A low receivables turnover is desirable.
B.	The lower the total debt-to-equity ratio, the lower the financial risk for a firm.
C.	An increase in net profit margin with no change in sales or assets means a poor ROI.
D.	The higher the tax rate for a firm, the lower the interest coverage ratio.
Answer» C. An increase in net profit margin with no change in sales or assets means a poor ROI.

Discussion

No Comment Found

Related MCQs

Two mutually exclusive projects with different economic lives can be compared on the basis of
If the Money Discount Rate is 19% and Inflation Rate is 12%, then the Real Discount Rate is:
Risk in Capital budgeting implies that the decision-maker knows___________of the cash flows.
Minimum Rate of Return that a firm must earn in order to satisfy its investors, is also known as:
In order to calculate the proportion of equity financing used by the company, the following should be used:
In order to find out cost of equity capital under CAPM, which of the following is not required:
Which of the following is not a generally accepted approach for Calculation of Cost of Equity?
In MM Model with taxes, where 'r' is the interest rate, D is the total debt and 't' is tax rate, then present valued shields would be:
Which of the following appearing in the balance! generates tax advantage and hence affects the c, structure decision ?
Which of the following stresses on investor's preference reorient dividend than higher future capital gains ?