Chapter 3

A firm has total debt of $1,390 and a debt-equity ratio of .24. What is the value of the total assets?

$7,181.67

Sunshine Rentals has a debt-equity ratio of .67. The return on assets is 8.1 percent, and total equity is $595,000. What is the net income?

$80,485.65

With this partial Balance Sheet data, find the Quick Ratio; Cash = $280 Accounts payable = $1,570 Accruals = $230 Notes Payable = $200 Accounts receivables = $1,100 Long-term debt = $1,150 Inventory = $1,960

0.69

High Road Transport has a current stock price of $5.60. For the past year, the company had net income of $287,400, total equity of $992,300, sales of $1,511,000, and 750,000 shares outstanding. What is the market-to-book ratio?

4.23

DJ's has a total asset turnover rate of 1.13, an equity multiplier of 1.46, a profit margin of 5.28 percent, a retention ratio of .74, and total assets of $138,000. What is the sustainable growth rate?

6.89 percent

Which one of the following will increase the profit margin of a firm, all else held constant?

Decrease in the tax rate

Which one of the following is the maximum growth rate that a firm can achieve without any additional external financing?

Internal growth rate

The sustainable growth rate is defined as the maximum rate at which a firm can grow given which of the following conditions?

No new external equity and a constant debt-equity ratio

Common-size financial statements present all balance sheet account values as a percentage of:

total assets.

If a firm has a 100 percent dividend payout

zero percent.