Fin5080 Quiz 2

Question: #6200

Fin5080 Quiz 2

1. XYZ earned a net profit margin of 4.2% last year and had an equity multiplier of 2.3. If its total assets are $99 million and its sales are 182 million, what is the firm's return on assets?

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

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

4. 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?

5. ABC has total sales of $214, assets of $108, return on equity of 23%, and net profit margin of 9%. What is the debt ratio?

6. XYZ earned a net profit margin of 5.1% last year and had an equity multiplier of 3.9. If its total assets are $100 million and its sales are 141 million, what is the firm's debt ratio?

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

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

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

10. ABC, Inc., has a market-to-book ratio of 3, net income of $89,219, a book value per share of $18.8, and 49,843 shares of stock outstanding. What is the price-earnings ratio?

11. 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?

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

13. ABC's balance sheet indicates a book value of shareholders' equity of $741,149. The firm's earning per share are $2.3 and the price-earnings ratio is 10.92. If there are 52,104 shares outstanding, what is the book value per share?

14. 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?

15. Blackstone, Inc., has net income of $8,619, a tax rate of 35%, and interest expense of $703. What is the times interest earned ratio?

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

17. XYZ has total sales of $200, assets of $89, return on equity of 26%, and net profit margin of 8%. What is the amount of equity?

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

19. 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?

20. 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)?

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?

22. 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?

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

24. 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?

25. 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.

26. Smith Corporation has current assets of $11,400, inventories of $4,000, and a current ratio of What is Smith s acid test ratio? Assume pre-paid expenses is zero.

27. ABC's balance sheet indicates a book value of shareholders' equity of $829,685. The firm's earning per share are $2 and the price-earnings ratio is 11.28. If there are 44,416 shares outstanding, what is the market value per share?

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

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

30. ABC's balance sheet indicates a book value of shareholders' equity of $792,736. The firm's earning per share are $3.7 and the price-earnings ratio is 12.74. If there are 46,254 shares outstanding, what is the market-to-book ratio?

31. ABC earned a net profit margin of 4.4% last year and had an equity multiplier of 3.9. If its total assets are $95 million and its sales are 159 million, what is the firm's return on equity?

Solution: #6206

Fin5080 - Quiz 2

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