4. A high ratio of liabilities to total assets may indicate all.of the following except:...
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Accounting
4. A high ratio of liabilities to total assets may indicate all.of the following except: a. Total liabilities exceed equity. b. The company is financing its operations with a high percentage of debt. c. If operating performance declines, the company may face increased risk that it will not be able to pay its liabilities. d. The company's ability to borrow additional funds would be difficult for new expansion opportunities. Choose the correct answer: 5. Comparing Years 1 and 2, should creditors feel more orless.safe in Year 2 6. With a market price of $526.40, compute the price-earnings ratio for Year 2. Round to one decimal place 7. With a market price of $560.36, compute the price-earnings ratio for Year 1. Round to one decimal place 8. The price-earnings ratio has decreased b 5.0 percent during Year 2. This decreasein the price-earnings ratio implies the market has changed its expectation for earnings growth and it expects earnings to grow slower than what was expected in Year 1
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