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Question
A bank has a concern because they feel that a firm has an excessive amount of assets. They do not feel that the firm is efficient in generating sales from their current level of assets. What ratio are they most likely to examine to answer this question?
A. Selling and administrative expenses/Net sales
B. Net sales/Total assets
C. Current assets - Current liabilities
D. Net income/Total assets
E. Long-term debt/(Long-term debt + Net worth)
Answer
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Related questions
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Which of the following adjustments are made to gross loans and leases to obtain net loans and leases?
A. Loan and lease loss allowance is added to gross loans.
B. Unearned income is subtracted from gross interest received.
C. Investment income is added to gross interest received.
D. Loan and lease loss allowance and unearned income is subtracted from gross loans.
E. Loan and lease loss allowance is subtracted from gross loans and investment income is added to gross interest received.
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Which of the following would not be a telephone service that customers can get from a bank call center?
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B. A fax copy of a loan application to the bank
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What is the yield to maturity on this T-Bill?
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Which of the following would be an example of a repriceable asset?
A. Money the bank has borrowed from the money market
B. Cash in the vault
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According to the textbook, the lackadaisical profit performance surrounding a merger may be explained by the:
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D. managerial hubris and sizeable merger premium that acquirers have to pay to shareholders of the acquired firms.
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