Which of the following actions by a company would not be helpful in a deleveraging plan...
Which of the following actions by a company would not be helpful in a deleveraging plan (i.e. reducing the debt ratio)?
|
Increasing revenues |
||
|
Liquidating a business segment's assets at a gain |
||
|
Cutting operating expenses |
||
|
Paying cash dividends |
Homework Answers
Add Answer to:
Which of the following actions by a company would not be helpful
in a deleveraging plan...
1) Which of the following ratios would be used to access a company’s ability to survive...
1) Which of the following ratios would be used to access a company’s ability to survive a four-year cyclical business downturn? a. Long-term debt to equity ratio b. Quick ratio c. Times interest earned d. Return on assets 2) Which of the following ratios would be best used to access the performance of company management in increasing shareholder wealth? a. Gross profit margin b. Economic Value Added c. Dividend yield d. Book value 3) What is the ABC Company’s coverage...
Which of the following statements describes a "Capacity' strength or weakness for a company in the...
Which of the following statements describes a "Capacity' strength or weakness for a company in the 5 Cs of credit framework? There are assets available to secure the loan in the event of a default. The net profit margin ratio is high. There is a large potential customer base in this industry. OOO The company has sufficient equity to withstand a downturn. Which of the following tools or methods is used to assess the general business environment? MAST framework PEST...
Which of the following is NOT true? A. The financial statement which reports information helpful in...
Which of the following is NOT true? A. The financial statement which reports information helpful in calculating the current ratio would be the balance sheet. B. A gain on the sale of land is included in net income from operations in a multi-step income statement. C. The governmental agency that has broad powers to prescribe accounting practices to public companies that trade on the major stock exchanges is the Securities Exchange Commission. D. Current assets will be typically be converted...
Which of these actions would likely result in a lower current ratio? Question 10 options: Increasing...
Which of these actions would likely result in a lower current ratio? Question 10 options: Increasing cash by selling excess fixed assets. Holding more stocks to offer better customer service. Allowing major customers more time to pay bills. Extending the time to pay suppliers
1.Which of the following would be an example of an investing activity on the Statement of...
1.Which of the following would be an example of an investing activity on the Statement of Cash Flows? a.issuance of bonds payable b.purchase of bonds as an investment c.issuance of common shares d.collection of rent from tenants 2.Information on a company’s cash flows is used for all of the following, except a.assess the company’s ability to repay debt in the future. b.evaluate the potential for the company to be able to pay dividends in the future. c.evaluate a company’s liquidity...
Which of the following would improve Liquidity: ( a ) Factoring a business’s Accounts Receivable (...
Which of the following would improve Liquidity: ( a ) Factoring a business’s Accounts Receivable ( b ) Using surplus cash to buy Land and Buildings ( c ) Paying all Accounts Payable sooner ( d ) Increasing employees wages ( e ) All of the above 2 If the Net Profit Ratio decreases, which of the following will NOT improve the ratio: ( a ) Increasing the sales price ( b ) Finding a cheaper supplier of your product...
1. Which one of the following actions will increase the current ratio, all else constant? Assume...
1. Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0. a. Cash purchase of inventory b. Cash payment of an account receivable C Cash payment of an account payable d. Cash sale of inventory at a loss 2. The Equity Multiplier is equal to: @ One plus the debt-equity ratio b. One plus the total asset turnover C. Total debt divided by total equity d. Total equity...
Which of the following statements is CORRECT? If a company were to issue debt and use...
Which of the following statements is CORRECT? If a company were to issue debt and use the money to repurchase common stock, this action would have no impact on the company's return on assets. (Assume that the repurchase has no impact on the company's operating income.) The debt ratio that maximizes EPS generally exceeds the debt ratio that maximizes share price. Increasing financial leverage is one way to increase a firm's basic earning power (BEP). Firms with lower fixed costs...
2. Which of the following lease contract would be the most likely be classified as a...
2. Which of the following lease contract would be the most likely be classified as a finance lease by the lessee? a. The lease term is 7 years and economic life of the lease asset is 8 years b. The fair value of the lease asset is $20 million, and the present value of the lease payments is $13 million c. Ownership of the leased assets reverts to the lessor at the end of the lease term d. The lessee...
5. Which of the following are items accounts that typically appear on a balance sheet? a....
5. Which of the following are items accounts that typically appear on a balance sheet? a. cost of goods sold, operating expenses, taxes. b. net sales, inventories, notes payable. e. net fixed assets, depreciation expense, advertising expenditures. d. cash, depreciation expense, taxes. e. None of the combinations listed above are correct. 6. Which of the following would directly increase net cash flow from operating activities (assuming all else remains constant)? Note: there is more be more than one answer for...
Which of the following statements describes a "Capacity' strength or weakness for a company in the 5 Cs of credit framework? There are assets available to secure the loan in the event of a default. The net profit margin ratio is high. There is a large potential customer base in this industry. OOO The company has sufficient equity to withstand a downturn. Which of the following tools or methods is used to assess the general business environment? MAST framework PEST...
1. Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0. a. Cash purchase of inventory b. Cash payment of an account receivable C Cash payment of an account payable d. Cash sale of inventory at a loss 2. The Equity Multiplier is equal to: @ One plus the debt-equity ratio b. One plus the total asset turnover C. Total debt divided by total equity d. Total equity...
Which of the following statements is CORRECT? If a company were to issue debt and use the money to repurchase common stock, this action would have no impact on the company's return on assets. (Assume that the repurchase has no impact on the company's operating income.) The debt ratio that maximizes EPS generally exceeds the debt ratio that maximizes share price. Increasing financial leverage is one way to increase a firm's basic earning power (BEP). Firms with lower fixed costs...
2. Which of the following lease contract would be the most likely be classified as a finance lease by the lessee? a. The lease term is 7 years and economic life of the lease asset is 8 years b. The fair value of the lease asset is $20 million, and the present value of the lease payments is $13 million c. Ownership of the leased assets reverts to the lessor at the end of the lease term d. The lessee...
5. Which of the following are items accounts that typically appear on a balance sheet? a. cost of goods sold, operating expenses, taxes. b. net sales, inventories, notes payable. e. net fixed assets, depreciation expense, advertising expenditures. d. cash, depreciation expense, taxes. e. None of the combinations listed above are correct. 6. Which of the following would directly increase net cash flow from operating activities (assuming all else remains constant)? Note: there is more be more than one answer for...
Most questions answered within 3 hours.
-
A ball is dropped from a rocket that is 350 m above the ground
and rising...
asked 1 hour ago -
Testbank, Question 31 James Water Park Company’s preferred
shares pay an annual dividend of $3.00 per...
asked 1 hour ago -
A steel wire in a piano has a length of 0.680 m and a mass of...
asked 4 hours ago -
Is validity and reliability tested by the following methods of
data analysis:
The questionnaires were coded...
asked 5 hours ago -
whats the relationship between toxoids and clostridium tetani and
botulinum?
asked 5 hours ago -
1)Explain what it means when demand is inelastic?
2) If demand is elastic, total revenue will...
asked 5 hours ago -
Jose is making quarterly contributions of of $210 to his savings
account which pays interest at...
asked 5 hours ago -
Rachel is pushing a box across the floor while Jon, at the same
time, is hoping...
asked 5 hours ago -
According to the Situational Leadership Model, which of the
following development levels works with a supporting...
asked 5 hours ago -
The Acme Trucking company has hired you to write software to
help dispatch its trucks. One...
asked 5 hours ago -
Write a script that uses four separate for loops to output the
following:
1 2 3...
asked 5 hours ago -
An instructor who taught two sections of engineering statistics
last term, the first with 20 students...
asked 6 hours ago