The correct option is b.) profitability ratios
Ratios that provide valuable information to shareholders are profitability ratios.
<h3>What is profitability ratios?</h3>
Profitability ratios are a type of financial metric that is used to evaluate a company's ability to generate profits relative to its revenue, operational costs, balance sheet assets, as well as shareholders' equity over time, utilizing data from a single point in time.
Some key features regarding the profitability ratios are-
- Profitability ratios are comparable to efficiency ratios, which take into account how well a corporation uses its assets from within to earn revenue (as opposed to after-cost profits).
- Profitability ratios show how well a company is generating profit & value for its shareholders.
- Higher ratio outcomes are frequently more favorable, but when compared to similar company results, the company's own past results, or the industry average, these ratios provide significantly more information.
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Answer:
Answer for the following statement is "C"
Explanation:
- Sale of Gar's receivable accounts to Ross, with the possibility of noncollectable accounts being passed to Ross.
- Non-recourse factoring helps a corporation to offer its invoices to a component without any duty to accept unpaid invoices.
- If consumers refuse to pay their bills or pay their invoices late, all damages are borne by the element, making the company unregulated.
The three main sources of federal tax revenue are individual income taxes, payroll taxes, and corporate income taxes. Other sources of tax revenue include excise taxes, the estate tax, and other taxes and fees.
Answer: Investors will generally view an increase in debt as a positive sign for the firm's value.(E)
Explanation:
Investors will generally view an increase or rise in debt as a positive sign of the value of the firm. Rational investors are likely to invest in a higher firm value provided the firm is all-equity financed.
High-growth firms that has future positive net present value projects most times tend to have high levels of debt.
