Quiz 1 for corporate finance

Jul 2nd, 2015
DotaCN
Category:
Price: \$10 USD

Question description

Question 1 12.5 pts

Which ratio below would give the best sense of the overall efficiency of the firm?

 Fixed Asset Turnover

 Total Asset Turnover (TATO)

 Total Debt to Total Assets

 Current Ratio

 Inventory Turnover

Question 2 12.5 pts

If the return on assets for a firm is 14.5% and the firm is financed with 50% debt and 50% equity, what is the return on equity?
 7.25%

 not enough information

 29.0%

 19.5%

Question 3 12.5 pts

If the "debt to equity" ratio is 2.2, what is the "debt to assets" ratio?

 No answer text provided.

 0.6875

 2.2

 3.2

Question 4 12.5 pts

From Problem 2.15:

Cash  47,250
Short term investments 3,800
Accounts Receivable 283,500
Inventories 141,750
Total Current Assets 476,300

Total Assets  807,500

What is the common size number for Inventories?

 14.175

 not enough information

 17.56

 80.71

Question 5 12.5 pts

If inventories grew from 135,000 to 141,750 over the 2009 to 2010 years, what was the percentage increase in inventories?

 1.05%

 not enough information

 105%

 5.0%

Question 6 12.5 pts

What is the Days Sales Outstanding for a firm with the following information (assume 365 day year):

Sales: 900

COGS: 500

Depreciation:  100

Interest:  50

Inventory:  100

Accounts Receivable:  150

 2.47 days

 60.83 days

 40.56 days

 Not enough information

 0.167 days

Question 7 12.5 pts

What is inventory turnover for a firm with the following information.  Use the formula with COGS instead of Sales:

Sales: 900

COGS: 500

Depreciation:  100

Interest:  50

Inventory:  100

Accounts Receivable:  150

 3

 5

 6

 4

Question 8 12.5 pts

What are the three "levers" for Return on Equity?  That is, what three ratios can be used to calculate return on equity?

 profit margin, total asset turnover and equity multiplier

 profit margin, debt ratio and return on assets

 inventory turnover, debt to equity and leverage

 profitability, efficiency and market value ratios

(Top Tutor) Daniel C.
(997)
School: New York University

Studypool has helped 1,244,100 students

Review from our student for this Answer

Sigchi4life
Jul 3rd, 2015
"Goes above and beyond expectations !"

Type your question here (or upload an image)

1820 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors