Question 1

 

The Jamestown Group has equity of $421,000, sales of $792,000, and a profit margin of 6 percent. What is the return on equity?

Answer

[removed]

 

8.87 percent

[removed]

 

6.19 percent

[removed]

 

11.29 percent

[removed]

 

10.27 percent

[removed]

 

9.37 percent

1 points  

Question 2

 

If the Debt/Equity Ratio is 0.60. What is the Debt Ratio?

Answer

[removed]

 

0.40

[removed]

 

0.375

[removed]

 

0.60

[removed]

 

1

[removed]

 

o.4444

1 points  

Question 3

 

XYZ earned a net profit margin of 7.6% last year and had an equity multiplier of 3.4. If its total assets are $94 million and its sales are 179 million, what is the firm's debt ratio?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

Answer [removed]

1 points  

Question 4

 

ABC earned a net profit margin of 7.8% last year and had an equity multiplier of 3.9. If its total assets are $116 million and its sales are 180 million, what is the firm's return on equity?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

Answer [removed]

1 points  

Question 5

 

ABC's Balance Sheet lists Current Assets of $300, Current Liabilities of $200, Fixed Assets of $700, Long-Term Debt of $400. ABC has 200 shares outstanding. What is the market-to-book ratio (MTB) if the market price per share is $8?

Answer

[removed]

 

4 times

[removed]

 

400 times

[removed]

 

2 times

[removed]

 

8 times

[removed]

 

0.25 times

1 points  

Question 6

 

If the debt ratio is 0.20, the Equity Multiplier is:

Answer

[removed]

 

1.25

[removed]

 

0.25

[removed]

 

1.20

[removed]

 

0.20

[removed]

 

0.80

[removed]

 

1.5

1 points  

Question 7

 

Blackstone, Inc., has net income of $8,910, a tax rate of 39%, and interest expense of $739. What is the times interest earned ratio?

Enter your answer rounded off to two decimal points.

Answer [removed]

1 points  

Question 8

 

XYZ has total sales of $209, assets of $93, return on equity of 30%, and net profit margin of 5%. What is the amount of equity?

Enter you answer rounded off to two decimal points. Do not enter $ in the answer box.

Answer [removed]

1 points  

Question 9

 

Smith Corporation has current assets of $11,400, inventories of $4,000, and a current ratio of 2.6. What is Smith s acid test ratio? Assume pre-paid expenses is zero.

Answer

[removed]

 

1.69

[removed]

 

0.54

[removed]

 

0.74

[removed]

 

1.35

1 points  

Question 10

 

Toast and Butter, Inc., has total assets of $712,000 and an equity multiplier of 1.6. What is the debt-equity ratio?

Answer

[removed]

 

0.60

[removed]

 

0.67

[removed]

 

0.63

[removed]

 

1.60

[removed]

 

1.67

1 points  

Question 11

 

ABC, Inc., has a market-to-book ratio of 2, net income of $85,033, a book value per share of $16.4, and 48,513 shares of stock outstanding. What is the price-earnings ratio?

Enter your answer rounded off to two decimal points.

Answer [removed]

1 points  

Question 12

 

If Roten, Inc., has a equity multiplier of 1.75, total asset turnover of 1.30, and profit margin of 8.5 percent, what is the return on equity (ROE)?

Answer

[removed]

 

19.34%

[removed]

 

2.275%

[removed]

 

1.75%

[removed]

 

14.875%

1 points  

Question 13

 

Wexford Hotels has sales of $289,600, depreciation of $21,400, interest of $1,300, Operating Income of $23,269.70, and a tax rate of 34 percent. What is the times interest earned ratio?

Answer

[removed]

 

20

[removed]

 

17.9

[removed]

 

18.5

[removed]

 

16

[removed]

 

19.8

1 points  

Question 14

 

ABC's balance sheet indicates a book value of shareholders' equity of $841,083. The firm's earning per share are $2.4 and the price-earnings ratio is 11.52. If there are 43,907 shares outstanding, what is the market value per share?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

Hint: Market value per share is same as market price per share.

Answer [removed]

1 points  

Question 15

 

A firm has sales of $350,000, a profit margin of 6 percent, a total asset turnover rate of 1.25, and an equity multiplier of 1.4. What is the return on equity?

Answer

[removed]

 

10.50 percent

[removed]

 

7.50 percent

[removed]

 

7.75 percent

[removed]

 

11.11 percent

[removed]

 

5.36 percent

1 points  

Question 16

 

A firm has net working capital of $1,100 and current liabilities of $2,800. What is the current ratio?

Answer

[removed]

 

.98

[removed]

 

2.56

[removed]

 

.39

[removed]

 

.72

[removed]

 

1.39

1 points  

Question 17

 

A firm has total assets of $682,000 and total equity of $424,000. What is the debt-equity ratio?

Answer

[removed]

 

1.61

[removed]

 

0.61

[removed]

 

1.64

[removed]

 

0.62

1 points  

Question 18

 

If the debt ratio is 0.80, the Equity Multiplier is:

Answer

[removed]

 

0.8

[removed]

 

0.2

[removed]

 

1

[removed]

 

5

[removed]

 

1.8

[removed]

 

4

1 points  

Question 19

 

ABC's balance sheet indicates a book value of shareholders' equity of $836,775. The firm's earning per share are $3.6 and the price-earnings ratio is 11.05. If there are 59,171 shares outstanding, what is the market-to-book ratio?

Enter your answer rounded off to two decimal points.

Hint: Market value per share is same as market price per share

Answer [removed]

1 points  

Question 20

 

A firm has total equity of $70,312.50, a profit margin of 8 percent, an equity multiplier of 1.6, and a total asset turnover of 1.3. What is the amount of the firm s sales?

Answer

[removed]

 

$91,406

[removed]

 

$112,500

[removed]

 

$121,500

[removed]

 

$137,500

[removed]

 

$146,250

1 points  

Question 21

 

The Baker s Dozen has current liabilities of $5,600, net working capital of $2,100, inventory of $3,900, and sales of $13,500. What is the quick ratio? Assume pre-paid expenses are zero.

Answer

[removed]

 

0.68

[removed]

 

0.70

[removed]

 

1.38

[removed]

 

1.47

[removed]

 

2.08

1 points  

Question 22

 

If the debt ratio is 0.60, the Debt/Equity Ratio is:

Answer

[removed]

 

1.25

[removed]

 

0.25

[removed]

 

1.20

[removed]

 

0.20

[removed]

 

0.80

[removed]

 

1.5

1 points  

Question 23

 

Top Sound, Inc., has total assets of $212,000, a debt-equity ratio of .6, and net income of $9,500. What is the return on equity?

Answer

[removed]

 

6.87 percent

[removed]

 

7.17 percent

[removed]

 

7.34 percent

[removed]

 

7.50 percent

[removed]

 

7.67 percent

1 points  

Question 24

 

ABC's balance sheet indicates a book value of shareholders' equity of $710,884. The firm's earning per share are $2.9 and the price-earnings ratio is 11.02. If there are 43,006 shares outstanding, what is the book value per share?

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

Hint: Market value per share is same as market price per share

Answer [removed]

1 points  

Question 25

 

If the Debt/Equity Ratio is 0.50. What is the Debt Ratio?

Answer

[removed]

 

0.50

[removed]

 

0.375

[removed]

 

0.60

[removed]

 

1

[removed]

 

o.3333

1 points  

Question 26

 

ABC has total sales of $181, assets of $93, return on equity of 36%, and net profit margin of 9%. What is the debt ratio?

Enter you answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

Answer [removed]

1 points  

Question 27

 

If the debt ratio is 0.75, the Debt/Equity Ratio is:

Answer

[removed]

 

0.75

[removed]

 

0.25

[removed]

 

1

[removed]

 

5

[removed]

 

1.75

[removed]

 

3

1 points  

Question 28

 

The ability of the firm to pay off short-term obligations as they come due is indicated by:

Answer

[removed]

 

My Grade Point Average

[removed]

 

Turnover Ratios

[removed]

 

Liquidity Ratios

[removed]

 

Profitability Ratios

1 points  

Question 29

 

ABC Corporation has the following ratios: Total Asset Turnover= 1.6 Total debt to total assets= 0.5 Current Ratio= 1.7 Current Liabilities= $2,000,000 Sales = $16,000,000 What is the amount of current assets?

Answer

[removed]

 

2,000,000

[removed]

 

3,200,000

[removed]

 

3,400,000

[removed]

 

1,000,000

1 points  

Question 30

 

XYZ earned a net profit margin of 4.5% last year and had an equity multiplier of 3.7. If its total assets are $116 million and its sales are 152 million, what is the firm's return on assets?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

Answer [removed]

1 points  

Question 31

 

If the Debt/Equity Ratio is 0.80. What is the Debt Ratio?

Answer

[removed]

 

0.40

[removed]

 

0.375

[removed]

 

0.60

[removed]

 

1

[removed]

 

o.4444

    • 6 years ago
    A+++++++++++ Solution
    NOT RATED

    Purchase the answer to view it

    • attachment
      fin-solution.docx