Multiple choice
ThehonestQuestion 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?
8.87 percent
6.19 percent
11.29 percent
10.27 percent
9.37 ercent
Question 2
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?
2,000,000
3,200,000
3,400,000
1,000,000
Question 3
ABC's balance sheet indicates a book value of shareholders' equity of $897,703. The firm's earning per share are $2.9 and the price-earnings ratio is 11.96. If there are 52,701 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
Question 4
If the debt ratio is 0.20, the Equity Multiplier is:
1.25
0.25
1.20
0.20
0.80
1.5
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