Tying Ratios Together Quiz PDF: Questions and Answers - 135

MCQ 671: The return on assets is equal 6.7% and equity multiplier is equal to 2.5% then the return on equity will be

1. 0.1675
2. 0.0268
3. 0.00373
4. 0.092

MCQ 672: The values of assets purchased or the liabilities recorded as recorded by bookkeepers are considered as

1. appreciated values
2. depreciated values
3. market values
4. book values

MCQ 673: In large expansion programs, the increased riskiness and the floatation cost associated with project can cause

1. rise in marginal cost of capital
2. fall in marginal cost of capital
3. rise in transaction cost of capital
4. rise in transaction cost of capital

MCQ 674: The business owned by a single person in unincorporated way is called

1. proprietorship
2. personal business
3. private corporation
4. personal ownership

MCQ 675: An expected rate of return is subtracted from capital gains yield to calculate

1. expected dividend yield
2. capital earnings
3. casual growth
4. specialized growth rate