Question 17 All else being equal, which one of the following will decrease a firm's current ratio? O a decrease in the net fixed assets a decrease in depreciation O a decrease in accounts payable O a decrease in a counts receivables

High interest coverage ratio does not indicate O a. The ability to pay future dividends O b. No other answer is true O c. The ability to pay interest O d. The percentage of operating profit paid as an interest

If we hold all other factors the same, an increase in interest rates will: a. Decrease the present value of a stream of constant payments we expect to receive. b. Increase the present value of a stream of constant payments we expect to receive. c. Decrease the interest revenue that a company will earn on its funds that it holds in its interest-bearing checking account. d. No impact on how much a company should be willing to pay for factory equipment that is expected to significantly reduce the factory electricity costs.

9 A _____currency is one whose value is set primarily by market forces of supply and demand A. Pegged B. Floating c. Managed D. Depreciated