江西财经大学公司金融期中考Multiple choice Solutions(1)

1、1 financial ratios that measure a firm's ability to pay its bills over the short run without undue stressare known asratios.a. asset management b- long-term solvency c. short-term solvency d. profitability e. market value2 ratios that measure a firm's financial leverage are known asratios.a.

2、 asset management b. long-term solvency c. short-term solvency d. profitability e. market value3 the financial ratio measured as earnings before interest and taxes, divided by interest expense is the:a. cash coverage ratio, b. debt-equity ratio, c. times interest earned ratio, d. gross margin. etota

3、l debt ratio.4 ratios that measure how efficiently a firm's management uses its assets and equity to generatebottom line net income are known asratios.a. asset management blong-term solvency.c short-term solvencyd. profitabilitye. market value5 the financial ratio measured as the price per share

4、 of stock divided by earnings per share is known as the:a. return on assets.b. return on equity.c. debt-equity ratio.d. price-earnings ratio.e. du pont identity.6 to calculate sustainable growth rate without using return on equity, the analyst needs the:a. profit margin.b. payout ratio.c. debt-to-eq

5、uity ratio.d. asset requirement ratio.e. all of these.7 sustainable growth can be determined by the:a. profit margin, total asset turnover and the price to earnings ratio.b. profit margin, the payout ratio, the debt-to-equity ratio, and the asset requirement ratio.c. total growth less capital gains

6、growth.d. either a or b.e. none of these.8 which of the following are liquidity ratios?i. cash coverage ratioll. current ratiolll. quick ratiolv. inventory turnovera. ii and iii onlyb. i and ii onlyc. ii, iii, and iv onlyd. i, iii, and iv onlye. i, ii, iii, and iv9 an increase in which one of the fo

7、llowing accounts increases a firm's current ratio without affecting its quick ratio?a. accounts payableb. cashc. inventoryd. accounts receivablee. fixed assets10 a banker considering loaning a firm money for ten years would most likely prefer the firm have adebt ratio ofand a times interest earn

8、ed ratio ofa. .75; .75.b. .50; l.oo.c. .45; 1.75.d. .40; 2.50.e. .35; 3.00.11 which one of the following statements is correct if a firm has a receivables turnover measure of 10?a. it takes a firm 10 days to collect payment from its customers.b. it takes a firm 36.5 days to sell its inventory and co

9、llect the payment from the sale.c. it takes a firm 36.5 days to pay its creditors.d. the firm has an average collection period of 36.5 days.e. the firm has ten times more in accounts receivable than it does in cash.12 the three parts of the du pont identity can be generally described as:i. operating

10、 efficiency, asset use efficiency and firm profitability.ii. financial leverage, operating efficiency and asset use efficiency.iii. the equity multiplier, the profit margin and the total asset turnover.iv. the debt-equity ratio, the capital intensity ratio and the profit margin.a. i and ii onlyb. ii

11、 and iii onlyc. i and iv onlyd. i and iii onlye. ill and iv only13 a firm's sustainable growth rate in sales does not directly depend on itsa. debt to equity ratio.b. profit margin.c. dividend policy.d. asset efficiency.e. all of these.14 a firm has sales of $1,200, net income of $200, net fixed

12、 assets of $500, and current assets of $300. the firm has $100 in inventory. what is the common-size statement value of inventory?a. 8.3 percent. 12.5 percentc. 20.0 percentd. 33.3 percente. 50.0 percent15 a firm has total debt of $1,200 and a debt-equity ratio of .30. what is the value of the total

13、 assets? a. $l,560b. $3,000c, $3,600d. $4,000e. $5,20016 mario's home systems has sales of $2,800, costs of goods sold of $2,100, inventory of $500, and accounts receivable of $400. how many days, on average, does it take mario's to sell their inventory?a. 65.2 daysb. 85.2 daysc. 86.9 daysd.

14、 96.9 dayse. 117.3 days17 rosita's restaurante has sales of $4,500, total debt of $1,300, total equity of $2,400, and a profit margin of 5 percent. what is the return on assets?a. 5.00 percentb. 6.08 percentc. 7.39 percentd. 9.38 percente. 17.31 percent18 jupiter explorers has $6,400 in sales. t

15、he profit margin is 4 percent. there are 6,400 shares of stock outstanding. the market price per share is $1.20. what is the price-earnings ratio?a. 13b. 14c. 21d. 30e. 4819 samuelson's has a debt-equity ratio of 40 percent, sales of $8,000, net income of $600, and total debt of $2,400. what is

16、the return on equity?a. 6.25 percentb. 7.50 percentc. 9.75 percentd. 10.00 percente. 11.25 percent20 a firm has a return on equity of 15 percent. the debt-equity ratio is 50 percent. the total asset turnover is 1.25 and the profit margin is 8 percent. the total equity is $3,200. what is the amount o

17、f the net income?a. $480b. $500c. $540d. $600e. $62021 the green giant has a 5% profit margin and a 40% dividend payout ratio. the total asset turnover is 1.40 and the equity multiplier is 1.50. what is the sustainable rate of growth?a. 6.30 percentb. 6.53 percentc. 6.72 percentd. 6.80 percente. 6.8

18、3 percent22 katelyn's kites has net income of $240 and total equity of $2,000. the debt-equity ratio is 1.0 and the plowback ratio is 40 percent. what is the internal growth rate?a. 2.46 percentb. 3.00 percentc. 4.92 percentd. 5.88 percente. 6.00 percent23 rally's auto has a roa of 10 percen

19、t and a 20 percent dividend payout ratio. what is rally's internal growth rate?a. 3.00 percentb. 3.95 percentc. 6.66 percentd. 7.85 percente. 8.70 percent24 lou's shop has net income of $3,000, a price-earnings ratio of 10, and earnings per share of $1.80. how many shares of stock are outsta

20、nding?a. 1,667b. 1,800c. l,195d. l,247e. 3,00025 a firm has a debt-equity ratio of .50. what is the total debt ratio?a. .25b. .33c. .50d. l.ooe. 1.2026. refers to the changes in net capital assets.a. operating cash flowb. cash flow from investingc. net working capitald. cash flow from assetse. cash

21、flow to creditors27. is calculated by adding back noncash expenses to net income and adjusting for changes in currentassets and liabilities.a. total cash flowb. capital spendingc. net working capitald. cash flow from operationse. cash flow to creditors28. which of the following are included in curre

22、nt liabilities?i. note payable to a supplier in eighteen monthsll. debt payable to a mortgage company in nine monthsiii. accounts payable to suppliersiv. loan payable to the bank in fourteen monthsa. i and iii onlyb. ii and iii onlyc. ill and iv onlyd. ii, iii, and iv onlye. i, llz and iii only29. w

23、hich one of the following statements concerning liquidity is correct?a. if you sold an asset today, it is a liquid asset.b. if you can sell an asset next year at a price equal to its actual value, the asset is highly liquid.c. trademarks and patents are highly liquid.d. the less liquidity a firm has

24、, the lower the probability the firm will encounter financial difficulties.e. balance sheet accounts are listed in order of decreasing liquidity.30< cash flow to stockholders must be positive when:a. the dividends paid exceed the net new equity raised.b. the net sale of common stock exceeds the amount of dividends paid.c. no income is distributed but new shares of stock are sold.d. both the cash flow to assets and the