# 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?

Enter your answer rounded off to two decimal points

. 1 points

Question 2

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

My Grade Point Average

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?

Enter your answer rounded off to two decimal points

.