# Exam OF FIN 101

**Adams Nigel**

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 |

- 10 years ago

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