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Finance Six problems including MCQ and short problem

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Question;1. The ratio that best measure a firm?s profitable use of its asset is:a. Return on equityb. Total asset turnoverc. Equity multiplierd. Return on assetse. Profit margin2. The current ratio of a firm is.0 if the firm uses cash to pay short-term notes payable (current liabilities), would the transaction increase or decrease the current ratio and return on assets ratio?a. The current ratio would increase, but return on assets would decrease.b. The current ratio would decrease, but return on assets would increase.c. When the current ratio is less than 11, paying short-term liabilities with cash will decrease the current ratio and increase the return on assets.d. There would be no change in either the current ratio or return on assets.e. Both the current ratio and return on assets would increase.3. Which of the following could cause return on assets to increase, all other things equal?a. an increase in fixed assetsb. A decrease in cost of goods sold.c. An increase in day?s sales in inventory.d. A decrease in inventory turnover.e. An increase in days? sales in receivable.4. Which of the following could cause return on equity to decrease, all other things equal?a. an increase in equity.b. a decrease in cost of goods sold.c. a decrease in taxes paid.d. a decrease in total assetse. a decrease in days? sales in inventory5. Selected information for a firm follows:Assets/ Equity: 1.84Profit/Margin: 16%Sales/Assets:.75Tax rate: 38%Return on equity (ROE) for the firm is:a. 29.44%b. 8.39%c. 28.50%d. 12.00%e. 22.08%Some;recent financial statements for Smolira Golf, Inc., follow.;SMOLIRA GOLF, INC.Balance;Sheets as of December 31, 2013 and 2014;2013;2014 2013 2014;Required;Smolira;Golf has 11,000 shares of common stock outstanding, and the market price for a;share of stock at the end of 2014 and $82.;Requirement 1;What is the price-earnings ratio?;Requirement 2;What is the price-sales ratio?;Requirement 3;What are the dividends per share?;Requirement 4;What;is the market-to-book ratio at the end of 2014?

 

Paper#48936 | Written in 18-Jul-2015

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