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B) True / False

Accounting

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B) True / False.

1. Higher Debt to Equity ratio means company has lower financial risk. [             ]

2. Increased Dividend per Share is a good signal of a strong performance of company to shareholders. [             ]

3. The Price - Earnings ratio (P/E) is the relationship between market price per share and company’s earnings per share. [             ]

4. To calculate Inventory Turnover, a company divides Sales by Average Inventory. [              ]

5. Solvency measures a company’s ability to meet its short-term debt. [                ]