I). Short-term creditors primary interests are the firm's current position, such as working capital, accounts receivable turnover rate, inventory turnover rate, operating cycle, current ratio, quick ratio, and unused lines of credit.
II). Interest coverage, or times interest earned, is a common measure of creditors' safety (particularly bondholders).
III). Return on equity is net income expressed as a percentage of average total stockholders' equity.
Return on assets is operating income expressed as a percentage of average total assets. The return on assets is a measure of the efficiency with which management utilizes the assets of a business.

Candidates beware of extraneous information and the possible trap set for you! Modified duration estimates the percentage change in bond price with a change in yield and is a very simple computation. You do not need to make the Macaulay adjustment (i.e. (Macaulay duration) - (1+YTM/2)) since the modified duration is already provided. This calculation is very straight forward however, do not forget to adjust for the " - "sign at the beginning of the formula. Just remember that bond prices and interest rates move in an inverse manner. Consequently as interest rates decrease, bond prices decrease
(and vice versa). The solution follows: The formula for a bond with a Modified duration is: % dP = -
Modified Duration * di dP/P * 100 = - Dmod * di Where dP = change in price for the bond, - Dmod = the modified duration for the bond, di = the yield change in basis points divided by 100, P = beginning price for the bond % dP = -19.400 * -2.90 = 56.260%

Ratios calculated from interim financial reports that use one balance sheet account and one income statement or statement of cash flows account are questionable because the income statement and statement of cash flows values represent accumulated amounts for less than one year, while the balance sheet values are full values similar to those at year end. The current ratio would be the least questionable ratio because it is calculated using two balance sheet accounts.

As an industry matures, sales are either stagnant or growing slowly. This lack of industry sales growth forces companies to increase sales by stealing market share from each other, often using price to lure away customers. All these factors make the industry a very unattractive market for new competitors to enter into.