What ratios are characteristic of an equity with high


1. What ratios are characteristic of an equity with high financial risk?

Debt-to-equity Interest Coverage

a. High High

b. Low High

c. High Low

d. Low Low

2. To maximize shareholder wealth, which of the following measures is most appropriate for management focus?

a. earnings per share

b. profits

c. stock value

d. total return per share

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