accounts data bank

61. Economic value added is calculated from:

A. Average total assets, current liabilities, net income, and the cost of capital.

B. EVA net income and EVA invested capital.

C. Net income, cost of capital, and net assets.

D. Net income and the cost of capital.

E. EVA net income, the cost of capital, and EVA invested capital.

62. Performance shares grant stock for achieving certain performance goals:

A. In the following year.

B. In two years or more.

C. In the current period.

D. When stock prices improve.

63. There is a current tax deduction for the firm for which of the following types of compensation?

A. Qualified stock options.

B. Nonqualified stock options.

C. Deferred bonus.

D. Current bonus.

E. Performance shares.

64. There is a current tax for the manager when which of the following types of compensation is received?

A. Qualified stock options

B. Nonqualified stock options

C. Deferred bonus

D. Current bonus

E. Performance shares

65. Which of the following types of compensation does not provide a deduction to the firm for tax purposes?

A. Perks

B. Qualified stock options

C. Retirement plans

D. Current bonus

E. Performance shares

66. Bonus payment options include all of the following except:

A. Perks.

B. Current bonus.

C. Deferred bonus.

D. Stock options.

E. Performance shares.

67. A CFO whose compensation plan may have had the effect of creating an incentive for unethical actions includes:

A. Kenneth Lay

B. Scott Sullivan

C. Bernie Madoff

D. Dennis Kozlowski

68.

The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010.

The accounts receivable turnover ratio for 2010 is:

A. 11.2

B. 12.7

C. 13.7

D. 14.9

69. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010.

The inventory turnover ratio for 2010 is (rounded):

A. 11.2

B. 12.7

C. 13.7

D. 14.9

70.

The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010.

The current ratio for 2010 is:

A. 1.8

B. 2.0

C. 3.9

D. 4.7

71. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010.

The gross margin percentage for 2010 is (rounded):

A. 11.2%

B. 12.7%

C. 13.7%

D. 14.9%

72.

The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010.

Return on assets for 2010 is:

A. 9.2%

B. 16.4%

C. 13.7%

D. 19.2%

73. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010.

Return on equity for 2010 is (rounded):

A. 11.6%

B. 14.6%

C. 15.5%

D. 18.9%

74.

The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010.

The value of the company, calculated using the earnings multiple for 2010 is:

A. $1,220,000

B. $1,620,000

C. $2,520,000

D. $8,335,000

75. The King Mattress Company had the following operating results for 2009-2010. In addition, the company paid dividends in both 2009 and 2010 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2009 was $8 and $7 in 2010. The industry average earnings multiple for the mattress industry was 9 in 2010 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2010.

The value of the company, calculated using the free cash flow multiple for 2010 is:

A. $1,220,000

B. $1,620,000

C. $2,520,000

D. $8,400,000