Finance Questions of Harvard Business

An increase in financial leverage generally results in a higher return on equity (ROE).

Top of Form

[removed]

True

[removed]

False

Bottom of Form

 

 

A company's return on assets should be greater than its return on equity.

Top of Form

[removed]

True

[removed]

False

Bottom of Form

 

 

An optimal current ratio should be greater than 1.0.

Top of Form

[removed]

True

[removed]

False

Bottom of Form

 

 

GoodTimes, Inc. has asset turnover of 0.5 times, a net profit margin of 10% and average total assets of $100, what is its net income (assuming no unusual items)?

Top of Form

[removed]

$50

[removed]

$500

[removed]

$5

[removed]

The answer cannot be determined with the information provided

Bottom of Form

 

 

Common-size financial statements are constructed in order to:

Top of Form

[removed]

Adjust for inflation and risk

[removed]

Facilitate comparisons of different-sized companies

[removed]

To comply with SEC requirements

[removed]

All of the above

Bottom of Form

 

 

A company builds a new plant and finances its construction by issuing stock. Which ratio is least likely to be affected, all else being equal?

Top of Form

[removed]

Current ratio

[removed]

Debt to equity ratio

[removed]

Debt to asset ratio

[removed]

Net fixed assets to total assets

Bottom of Form

 

 

A company has net working capital of $0, current liabilities of $25 and total assets equal to $100. What is its current ratio?

Top of Form

[removed]

0.0

[removed]

1.0

[removed]

0.5

[removed]

4.0

Bottom of Form

 

 

Analysis of a company's financial statements: Below are simplified versions of the balance sheet and income statement for Toys by Tom, Inc. Use this information to answer question 9.

Sales in 2003 were $10,000. Therefore, the compounded average growth rate is:

Top of Form

[removed]

8.6%

[removed]

6.7%

[removed]

6.3%

[removed]

Not enough information available

Bottom of Form

 

The cash cycle measures the days required to produce finished goods or delivered services.

Top of Form

[removed]

True

[removed]

False

Bottom of Form

 

In general, an increase in a liability is a source of funds.

Top of Form

 

True

False[removed]

Bottom of Form

 

 

 

    • Posted: 5 years ago
    Answers 100% correct

    Purchase the answer to view it

    blurred-text
      Save time and money!
      Our teachers already did such homework, use it as a reference!