1. As you increase the discount rate, the present value of some future amount?

a) Decreases

b) Increases

c) Could decrease or increase

d) It depends on how much you increase the discount rate

2. Considering several ratios, and holding all else constant, which scenario would you prefer?

a) High net profit margin; low return on assets; low debt ratio

b) High net profit margin; high return on assets; low debt ratio

c) High net profit margin; high return on assets; high debt ratio

d) Low net profit margin; high return on assets; low debt ratio