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##### finance mcq with solution

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Question;Question 1The Jamestown Group has equity of $421,000, sales of $792,000, and a profit margin of 6 percent. What is the return on equity?Answer8.87 percent6.19 percent11.29 percent10.27 percent9.37 percent1 pointsQuestion 2If the Debt/Equity Ratio is 0.60. What is the Debt Ratio?Answer0.400.3750.601o.44441 pointsQuestion 3XYZ 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.Answer1 pointsQuestion 4ABC 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.Answer1 pointsQuestion 5ABC'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?Answer4 times400 times2 times8 times0.25 times1 pointsQuestion 6If the debt ratio is 0.20, the Equity Multiplier is:Answer1.250.251.200.200.801.51 pointsQuestion 7Blackstone, 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.Answer1 pointsQuestion 8XYZ 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.Answer1 pointsQuestion 9Smith 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.Answer1.690.540.741.351 pointsQuestion 10Toast and Butter, Inc., has total assets of $712,000 and an equity multiplier of 1.6. What is the debt-equity ratio?Answer0.600.670.631.601.671 pointsQuestion 11ABC, 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.Answer1 pointsQuestion 12If 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)?Answer19.34%2.275%1.75%14.875%1 pointsQuestion 13Wexford 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?Answer2017.918.51619.81 pointsQuestion 14ABC'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.Answer1 pointsQuestion 15A 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?Answer10.50 percent7.50 percent7.75 percent11.11 percent5.36 percent1 pointsQuestion 16A firm has net working capital of $1,100 and current liabilities of $2,800. What is the current ratio?Answer.982.56.39.721.391 pointsQuestion 17A firm has total assets of $682,000 and total equity of $424,000. What is the debt-equity ratio?Answer1.610.611.640.621 pointsQuestion 18If the debt ratio is 0.80, the Equity Multiplier is:Answer0.80.2151.841 pointsQuestion 19ABC'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 shareAnswer1 pointsQuestion 20A 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$91,406$112,500$121,500$137,500$146,2501 pointsQuestion 21The 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.Answer0.680.701.381.472.081 pointsQuestion 22If the debt ratio is 0.60, the Debt/Equity Ratio is:Answer1.250.251.200.200.801.51 pointsQuestion 23Top 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?Answer6.87 percent7.17 percent7.34 percent7.50 percent7.67 percent1 pointsQuestion 24ABC'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 shareAnswer1 pointsQuestion 25If the Debt/Equity Ratio is 0.50. What is the Debt Ratio?Answer0.500.3750.601o.33331 pointsQuestion 26ABC 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.Answer1 pointsQuestion 27If the debt ratio is 0.75, the Debt/Equity Ratio is:Answer0.750.25151.7531 pointsQuestion 28The ability of the firm to pay off short-term obligations as they come due is indicated by:AnswerMy Grade Point AverageTurnover RatiosLiquidity RatiosProfitability Ratios1 pointsQuestion 29ABC 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?Answer2,000,0003,200,0003,400,0001,000,0001 pointsQuestion 30XYZ 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.Answer1 pointsQuestion 31If the Debt/Equity Ratio is 0.80. What is the Debt Ratio?Answer0.400.3750.601o.4444

Paper#47907 | Written in 18-Jul-2015

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