Finance Questions

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.



0.68



0.70



1.38



1.47



2.08

1 points 

Question 2



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





1 points 

Question 3



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



0.40



0.375



0.60



1



o.4444

1 points 

Question 4



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?



6.87 percent



7.17 percent



7.34 percent



7.50 percent



7.67 percent

1 points 

Question 5



ABC's balance sheet indicates a book value of shareholders' equity of $793,182. The firm's earning per share are $2.2 and the price-earnings ratio is 11.45. If there are 47,873 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.





1 points 

Question 6



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



0.75



0.25



1



5



1.75



3



1 points 

Question 7



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



0.50



0.375



0.60



1



o.3333

1 points 

Question 8



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



My Grade Point Average



Turnover Ratios



Liquidity Ratios



Profitability Ratios

1 points 

Question 9



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?



10.50 percent



7.50 percent



7.75 percent



11.11 percent



5.36 percent

1 points 

Question 10



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



.98



2.56



.39



.72



1.39

1 points 

Question 11



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



1.25



0.25



1.20



0.20



0.80



1.5

1 points 

Question 12



XYZ earned a net profit margin of 7.4% last year and had an equity multiplier of 3.8. If its total assets are $112 million and its sales are 129 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.





1 points 

Question 13



ABC earned a net profit margin of 6.8% last year and had an equity multiplier of 2.3. If its total assets are $107 million and its sales are 176 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.





1 points 

Question 14



ABC's balance sheet indicates a book value of shareholders' equity of $864,051. The firm's earning per share are $3.4 and the price-earnings ratio is 12.5. If there are 49,181 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





1 points 

Question 15



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 percent

1 points 

Question 16



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



1.61



0.61



1.64



0.62

1 points 

Question 17



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

1 points 

Question 18



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



0.40



0.375



0.60



1



o.4444

1 points 

Question 19



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



1.25



0.25



1.20



0.20



0.80



1.5

1 points 

Question 20



ABC has total sales of $207, assets of $109, return on equity of 23%, and net profit margin of 5%. What is the debt ratio?



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





1 points 

Question 21



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?



$91,406



$112,500



$121,500



$137,500



$146,250

1 points 

Question 22



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



0.8



0.2



1



5



1.8



4

1 points 

Question 23



XYZ earned a net profit margin of 5.9% last year and had an equity multiplier of 3.9. If its total assets are $96 million and its sales are 145 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.





1 points 

Question 24



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.



1.69



0.54



0.74



1.35

1 points 

Question 25



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



0.60



0.67



0.63



1.60



1.67

1 points 

Question 26



ABC, Inc., has a market-to-book ratio of 3, net income of $88,482, a book value per share of $18.8, and 40,322 shares of stock outstanding. What is the price-earnings ratio?



Enter your answer rounded off to two decimal points.





1 points 

Question 27



Blackstone, Inc., has net income of $9,728, a tax rate of 36%, and interest expense of $679. What is the times interest earned ratio?



Enter your answer rounded off to two decimal points.





1 points 

Question 28



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)?



19.34%



2.275%



1.75%



14.875%

1 points 

Question 29



XYZ has total sales of $203, assets of $115, return on equity of 34%, and net profit margin of 6%. What is the amount of equity?



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





1 points 

Question 30



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?



4 times



400 times



2 times



8 times



0.25 times

1 points 

Question 31



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?



20





17.9



18.5



16



19.8