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# ABC, Inc., has a market-to-book ratio of 2, net

Question # 00007636
Subject: General Questions
Due on: 02/28/2014
Posted On: 02/01/2014 11:57 AM

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# ABC, Inc., has a market-to-book ratio of 2, net

Question 1
ABC, Inc., has a market-to-book ratio of 2, net income of \$82,313, a book value per share of \$19.5, and 46,103 shares of stock outstanding. What is the price-earnings ratio?

1 points
Question 2
The ability of the firm to pay off short-term obligations as they come due is indicated by:

Turnover Ratios

Liquidity Ratios

Profitability Ratios
1 points
Question 3
XYZ earned a net profit margin of 6.1% last year and had an equity multiplier of 2.4. If its total assets are \$83 million and its sales are 168 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.

1 points
Question 4
XYZ has total sales of \$202, assets of \$93, return on equity of 22%, 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.

1 points
Question 5
Toast and Butter, Inc., has total assets of \$712,000 and an equity multiplier of 1.6. What is the debt-equity ratio?

0.60

0.67

0.63

1.60

1.67
1 points
Question 6
A 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?

10.50 percent

7.50 percent

7.75 percent

11.11 percent

5.36 percent
1 points
Question 7
Smith 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.

1.69

0.54

0.74

1.35
1 points
Question 8
If the debt ratio is 0.60, the Debt/Equity Ratio is:

1.25

0.25

1.20

0.20

0.80

1.5
1 points
Question 9
If 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)?

19.34%

2.275%

1.75%

14.875%
1 points
Question 10
If the debt ratio is 0.75, the Debt/Equity Ratio is:

0.75

0.25

1

5

1.75

3
1 points
Question 11
XYZ earned a net profit margin of 4% last year and had an equity multiplier of 2. If its total assets are \$93 million and its sales are 198 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.

1 points
Question 12
If the Debt/Equity Ratio is 0.60. What is the Debt Ratio?

0.40

0.375

0.60

1

o.4444
1 points
Question 13
The 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.

0.68

0.70

1.38

1.47

2.08
1 points
Question 14
A 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?

\$91,406

\$112,500

\$121,500

\$137,500

\$146,250
1 points
Question 15
If the debt ratio is 0.80, the Equity Multiplier is:

0.8

0.2

1

5

1.8

4
1 points
Question 16
ABC 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?

2,000,000

3,200,000

3,400,000

1,000,000
1 points
Question 17
If the Debt/Equity Ratio is 0.50. What is the Debt Ratio?

0.50

0.375

0.60

1

o.3333
1 points
Question 18
ABC has total sales of \$208, assets of \$102, return on equity of 26%, and net profit margin of 8%. What is the debt ratio?
Enter you answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

1 points
Question 19
If the debt ratio is 0.20, the Equity Multiplier is:

1.25

0.25

1.20

0.20

0.80

1.5
1 points
Question 20
ABC'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?

4 times

400 times

2 times

8 times

0.25 times
1 points
Question 21
If the Debt/Equity Ratio is 0.80. What is the Debt Ratio?

0.40

0.375

0.60

1

o.4444
1 points
Question 22
Top 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?

6.87 percent

7.17 percent

7.34 percent

7.50 percent

7.67 percent
1 points
Question 23
Blackstone, Inc., has net income of \$9,555, a tax rate of 25%, and interest expense of \$696. What is the times interest earned ratio?