# 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.