an equity multiplier

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