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Question 3 What is the effect of the exercise of stock options? Question 4 A summarized income statement for Leveraged Inc. is presented below. The degree of financial leverage is: Question 5 The earnings per share is computed for: Question 6 Which of the following ratios usually reflects investors opinions of the future prospects for the firm? Question 7 Which of the following ratios is a primary measure of liquidity according to the corporate controller survey? Question 8 Which of the following variables indicates a measure of cumulative profitability over time? Question 9 Which of the following ratios is rated to be a primary measure of liquidity and the highest significance rating of the liquidity ratios according to commercial loan departments? Question 10 Which of the following is not a discounted cash flow model for valuation?