Run the ratio gates

Exercise and reference answers

Questions

1. Correct

   Current

   Choices

   1. Current
   2. Quick
   3. Cash

2. Correct

   Quick

   Choices

   1. Current
   2. Quick
   3. Cash

3. Correct

   Debt equity

   Choices

   1. Debt equity
   2. Debt assets
   3. Neither

4. Correct

   Debt assets

   Choices

   1. Debt equity
   2. Debt assets
   3. Neither

5. Correct

   P/E

   Choices

   1. EPS
   2. P/E
   3. Book value

6. Correct

   EPS

   Choices

   1. EPS
   2. P/E
   3. Book value

Instructions

Pick the liquidity ratio, then the solvency ratio, then the market ratio.

Explanation