Multiple choice

1. The efficient market hypothesis deals primary with.

a.  random speculation in securities.

b. the degree to which prices adjust to new information.

c. degree to which price movement are the result past trends.

d.  how can investor can significantly outperform the market in general.

2. XYZ Co. has forecasted June sales of 600 units and July sales of 1000 units. The company maintains ending inventory equals to 125% pf next month’s Sales . June beginning  inventory reflect this policy. What is June required production?

a. 1100 units 

b. -0- units

c. 500 units 

d. 400 units 

3. Wiggles Right forecast sales $4,000 in January $6,000 in February and $55,00 in march. All sales are on credit 40% in collected the month of sale and the reminder the following month. How much is collected from account in receivable in February?

a. $5400

b. $4,800

c. $6,000

d. $3,000

4.  A firm has a debt to assets ratio of 75%, $240,000in debt, and net income of $48,000. calculate return on equity?

a. 60%

b. 20%

c. 26%

d. not enough information