Question

1. To determine whether a company is using leverage​ effectively, an analyst should consider

A. the debt to equity and times interest earned ratios.

B. ​inventory, accounts receivable and total asset turnover ratios.

C. the current ratio and net working capital.

D. ROA and the net profit margin.

2. Developing a general economic outlook assists in the identification of industries and firms that might be good investment opportunities.

True

False

3. Economic factors such as a weak dollar will have a negative impact on all industrial sectors.

True

False

Answer 1

1. The correct option is A

The Debt to equity and the times interest earned ratio is the measure of how the company is using the leverage effectively in comparison to Equity and the Operating profit.

2. The correct answer is True

The Economic outlook is beneficial for the industries and different sectors as it influences their deceisions and investment returns.

2. The correct answer is False

Weak Dollar would likely to affect in positive way to the businesses that does not do business in USD which are generally International companies present outside of the US Markets.