п»їISC 388 Investments Quiz 1
1) A firm has a higher quick (or acid solution test) ratio than the industry average, which usually impliesВ В
the firm has a higher P/E rate than other companies in the industry. W. В
the firm is likely to avoid bankruptcy in the short run than other firms in the industry. C. В
the firm can be less rewarding than other businesses in the industry. D. В
the firm contains a higher P/E ratio than other firms on the market and the organization is more likely to prevent insolvency inside the short run than other firms in the marketplace. E. В
the company is more likely to prevent insolvency in the short run than other firms on the market and the firm may be much less profitable than any other firms in the industry.
Current possessions earn below fixed assets; thus, a firm with a fairly high level of current resources may be much less profitable than other firms. Nevertheless , its high level of current assets makes it more water.
2) A strong has a larger asset yield ratio compared to the industry average, which impliesВ В
the firm provides a higher P/E ratio than any other firms in the market. B. В
the organization is more likely to prevent insolvency in the short run than other firms on the market. C. В
the organization is more profitable than other organizations in the industry. D. В
the firm is definitely utilizing property more efficiently than any other firms on the market. E. В
the company has higher spending on new fixed assets than other organizations in the industry.
The greater the advantage turnover proportion, the more successfully the organization is using assets.
3) If the interest on financial debt is above ROA, a strong will __________ by increasing the use of debts in the capital structure. В В
raise the ROE
not change the ROE
decrease the ROE
change the ROE in an indeterminable manner
If perhaps ROA is less than the interest rate, then ROE will decline by an amount that depends upon what debt to equity rate.
4) A firm has a P/E ratio of 12 and a ROE of 13% and a market-to-book worth ofВ В
1 . '08.
1 . 56.
E/P = ROE/(P/B); 1/12 = zero. 13 P/B; 0. 0833 = 0. 13/(P/B); 0. 0833(P/B) sama dengan 0. 13; P/B sama dengan 1 . 56.
Use the economical statements of Black Barn Company provided below answer questions five to 7.
5) The firm's current ratio to get 2009 isВ
2 . 31.
1 . 87.
2 . 22.
2 . 46.
$3, 240, 000/$1, 500, 000 sama dengan 2 . 31.
6) The firm's typical collection period for 2009 isВ
fifty five. 05.
None of the options
AREAL turnover = $8, 000, 000/[($1, 200, 1000 + $950, 000)/2] = several. 44; ACP = 365/7. 44 sama dengan 49. 05 days.
7) The business's P/E rate for 2009 isВ
almost eight. 88.
EPS = $660, 000/130, 1000 = $5. 08; $40/$5. 08 = 7. 88.
8) A strong has a net profit/pretax profit ratio of 0. 625, a power ratio of 1. 2, a pretax profit/EBIT of zero. 9, a great ROE of 17. 82%, a current percentage of eight, and a positive return on revenue ratio of 8%. The firm's asset turnover isВ В
1 ) 3.
2 . 3.
17. 82% sama dengan 0. 625 Г— zero. 9 Г— 8% Г— asset turnover Г— 1 . 2; property turnover = 3. three or more.
9) A firm has an ROA of 14%, a debt/equity ratio of 0. 8, a taxes rate of 35%, and the interest rate for the debt is definitely 10%. The firm's ROE isВ В
ROE sama dengan (1 - 0. 35)[14% & (14% - 10%)0. 8] sama dengan 11. 18%.
10) A strong has a (net profit/pretax profit) ratio of 0. 6th, a power ratio of two, a (pretax profit/EBIT) of 0. 6, an asset turnover ratio of two. 5, a current ratio of 1. 5, and a return upon sales percentage of 4%. The business ROE isВ
None of the choices
ROE = 0. 6th Г— 0. 6 Г— 4% Г— 2 . a few Г— a couple of = 7. 2%.
11) A measure of asset usage isВ
product sales divided by working capital.
go back on total assets.
go back on value capital.
operating profit divided by sales.
None of the options
The return on total assets procedures how efficiently the firm is making use of...