Filters
Question type
Study Flashcards

Which of the following is not a ratio used in the DuPont analysis?


A) Interest burden
B) Profit margin
C) Asset turnover
D) Earnings yield ratio

E) A) and B)
F) C) and D)

Correct Answer

verifed

verified

Use the following cash flow data of Haven Hardware for the year ended December 31, 2008. Use the following cash flow data of Haven Hardware for the year ended December 31, 2008. -What is the cash at the end of 2008 for Haven Hardware? A) $6,000 B) $94,000 C) $736,000 D) $188,000 -What is the cash at the end of 2008 for Haven Hardware?


A) $6,000
B) $94,000
C) $736,000
D) $188,000

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

Which one of the following ratios is used to calculate the times interest earned ratio?


A) Net profit/Interest expense
B) Pretax profit/EBIT
C) EBIT/Sales
D) EBIT/Interest expense

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

If a firm's ratio of (stockholders' equity/total assets) is lower than the industry average and its ratio of (long-term debt/stockholders' equity) is also lower than the industry average,this would suggest that the firm _________.


A) has more current liabilities than the industry average
B) has more leased assets than the industry average
C) will be less profitable than the industry average
D) has more current assets than the industry average

E) C) and D)
F) None of the above

Correct Answer

verifed

verified

Common size balance sheets are prepared by dividing all quantities by ____________.


A) total assets
B) total liabilities
C) shareholder's equity
D) fixed assets

E) B) and C)
F) A) and C)

Correct Answer

verifed

verified

Use the following cash flow data of Haven Hardware for the year ended December 31, 2008. Use the following cash flow data of Haven Hardware for the year ended December 31, 2008. -What is the net cash provided by or used in financing activities of Haven Hardware? A) ($10,000) B) ($120,000) C) $10,000 D) $120,000 -What is the net cash provided by or used in financing activities of Haven Hardware?


A) ($10,000)
B) ($120,000)
C) $10,000
D) $120,000

E) A) and C)
F) B) and C)

Correct Answer

verifed

verified

The net income of the company is $120.Accounts payable increase by $20,depreciation is $15,and equipment is purchased for $40.If the firm issued $110 in new bonds,what is the total change in cash for the firm for all activities?


A) Increase of $225
B) Increase of $130
C) Decrease of $195
D) Decrease of $110

E) A) and C)
F) None of the above

Correct Answer

verifed

verified

The tax burden of the firm is .4,the interest burden is 0.65,the return on sales is 0.05,the asset turnover is 0.90,and the leverage ratio is 1.35.What is the ROE of the firm?


A) 1.58%
B) 5.68%
C) 12.20%
D) 13.33%

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

The financial statements of Burnaby Mountain Trading Company are given below. The financial statements of Burnaby Mountain Trading Company are given below. Note: The common shares are trading in the stock market for $27 each. -Refer to the financial statements of Burnaby Mountain Trading Company.The firm's quick ratio for 2008 is _________. A) 1.30 B) 1.50 C) 1.69 D) 2.83 Note: The common shares are trading in the stock market for $27 each. -Refer to the financial statements of Burnaby Mountain Trading Company.The firm's quick ratio for 2008 is _________.


A) 1.30
B) 1.50
C) 1.69
D) 2.83

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

A firm has lower inventory turnover,a longer ACP,and a lower fixed-asset turnover than the industry averages.You should not be surprised to find that this firm has _____________. I.lower ATO than the industry average II.lower ROA than the industry average III.lower ROE than the industry average


A) I only
B) I and II only
C) II and III only
D) I, II and III

E) B) and D)
F) A) and B)

Correct Answer

verifed

verified

Which of the following results in an increase in cash to the firm?


A) Dividends paid
B) A delay in collecting on accounts receivable
C) Net new investments
D) Increase in accounts payable

E) None of the above
F) A) and C)

Correct Answer

verifed

verified

When assessing sustainability of a firm's cash flows,analysts will prefer to see cash growth generated from which of the following sources?


A) Cash flow from investment activities
B) Cash flow from operating activities
C) Cash flow from financing
D) Cash flow from extraordinary events

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

Which of the following statements is true concerning Economic Value Added?


A) A growing number of firms tie managers' compensation to EVA.
B) A profitable firm will always have a positive EVA.
C) EVA recognizes that the cost of capital is not a real cost.
D) If a firm has positive present value of growth opportunities it will have positive EVA.

E) All of the above
F) B) and C)

Correct Answer

verifed

verified

Many observers believe that firms "manage" their income statements to _______.


A) minimize taxes over time
B) maximize expenditures
C) smooth their earnings over time
D) generate level sales

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

A high price to book ratio may indicate which one of the following?


A) The firm expanded its plant and equipment in the past few years.
B) The firm is doing a better job controlling its inventory expense than other related firms.
C) Investors may believe that this firm has opportunities of earnings a rate of return excess of the market capitalization rate.
D) The firm's P/E ratio is too high.

E) B) and C)
F) B) and D)

Correct Answer

verifed

verified

Use the following cash flow data of Haven Hardware for the year ended December 31, 2008. Use the following cash flow data of Haven Hardware for the year ended December 31, 2008. -What is the net cash provided by operating activities of Haven Hardware? A) ($30,000) B) $220,000 C) $320,000 D) $780,000 -What is the net cash provided by operating activities of Haven Hardware?


A) ($30,000)
B) $220,000
C) $320,000
D) $780,000

E) A) and B)
F) B) and D)

Correct Answer

verifed

verified

A firm has an ROA of 19%,a debt/equity ratio of 1.8,a tax rate of 30%,and the interest rate on its debt is 7%.Its ROE is _________.


A) 15.12%
B) 28.42%
C) 37.24%
D) 40.60%

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

A firm has a ROE equal to the industry average but its price to book ratio is below the industry average.You know that the firm's _________.


A) earnings yield is above the industry average
B) P/E ratio is above the industry average
C) dividend payout ratio is too high
D) interest burden must be below the industry average

E) A) and C)
F) A) and D)

Correct Answer

verifed

verified

The firms leverage ratio is 1.2,interest burden ratio is .81,profit margin is .24,and its asset turnover is 1.25.What is the firm's ROA?


A) .250
B) .300
C) .335
D) .372

E) C) and D)
F) All of the above

Correct Answer

verifed

verified

The financial statements of Flathead Lake Manufacturing Company are given below: The financial statements of Flathead Lake Manufacturing Company are given below: Note: The common shares are trading in the stock market for $15 per share -Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's current ratio for 2007 indicates that Flathead's liquidity has ________ since 2006. A) risen B) fallen C) stayed the same D) can't tell from the information given Note: The common shares are trading in the stock market for $15 per share -Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's current ratio for 2007 indicates that Flathead's liquidity has ________ since 2006.


A) risen
B) fallen
C) stayed the same
D) can't tell from the information given

E) B) and D)
F) A) and B)

Correct Answer

verifed

verified

Showing 61 - 80 of 84

Related Exams

Exam 1

Investments: Background and Issues

75 Questions

Exam 2

Asset Classes and Financial Instruments

85 Questions

Exam 3

Securities Markets

90 Questions

Exam 4

Mutual Funds and Other Investment Companies

85 Questions

Exam 5

Risk and Return: Past and Prologue

83 Questions

Exam 6

Efficient Diversification

84 Questions

Exam 7

Capital Asset Pricing and Arbitrage Pricing Theory

85 Questions

Exam 8

The Efficient Market Hypothesis

86 Questions

Exam 9

Behavioral Finance and Technical Analysis

87 Questions

Exam 10

Bond Prices and Yields

93 Questions

Exam 11

Managing Bond Portfolios

85 Questions

Exam 12

Macroeconomic and Industry Analysis

89 Questions

Exam 13

Equity Valuation

88 Questions

Exam 15

Options Markets

88 Questions

Exam 16

Option Valuation

85 Questions

Exam 17

Futures Markets and Risk Management

87 Questions

Exam 18

Portfolio Performance Evaluation

87 Questions

Exam 19

Globalization and International Investing

70 Questions

Exam 20

Hedge Funds

60 Questions

Exam 21

Taxes,inflation,and Investment Strategy

73 Questions

Exam 22

Investors and the Investment Process

81 Questions

Show Answer