Fn 310

$1680

A firm has a return on equity of 21 percent. The total asset turnover is 2.9 and the profit margin is 8 percent. The total equity is $8,000. What is the net income?

Agency Problem

Which one of the following terms is described as a conflict of interest between the corporate shareholders and the corporate managers?

$367

Your firm has a net income of $247 and a total sales of 1,140. COGS a $640 and depreciation is $120. The tax rate is 35 %. The firm doesn't have interest expenses. What is the operating cash flow.

0.059

Zombie Corp. has a profit margin of 6.5 percent, total asset turnover of 1.9, and ROE of 18.64 percent. What is this firm's debt-equity ratio? Hint: first find the equity multiplier and use that to get the debt-equity ratio

$535

a firm has a common stock of $87, total liabilities of $395, current assets of $360 and net fixed assets of $570. What is the amount of shareholders equity?

6,537.14

a firm has a total debt of 1430 and a debt-equity ratio of .28. What is the value of total assets?

5.67%

assume the ratios are constant: total asset turnover: 1.47 Profit margin: 7.9% Equity multiplier: 1.4 Dividend Payout ratio: 67% What is the sustainable growth rate?

Maximum; excluding any external equity financing maintaining a constant debt-equity ratio

the sustainable growth rate of a firm is best described as the _________growth rate achievable ____

maximize the current value per share

which of the following best states the primary goal of financial management?

decrease in accounts payable

which of the following is a use of cash?

the owner of a sole proprietorship is personally responsible for all of the company's debts

which of the following statements concerning a sole proprietorship is correct?

balance sheet

which one of the following is the financial statement that shows the accounting value of a firm's equity as of a particular date?

quick ratio

which one of the following ratios is a measure of a firm's liquidity?

$76

At the beginning of the year, long-term debt of a firm is $310 and total debt is $340. At the end of the year, long-term debt is $270 and total debt is $350. The interest paid is $36. What is the amount of the cash flow to creditors?

5,062,500

Nimoy Inc., purchased their only fixed asset, a widget machine, four years ago for $7 million. Nimoy's current balance sheet shows net fixed assets of $2.8 million and current liabilities of $2.1 million. If all the current assets were liquidated today, the company would receive what they are worth today: $2.05 million cash. If their fixed assets were liquidated today, the company would receive what they are worth today: $4.7 million. Use the balance sheet identity to determine the current market value of Nimoy's equity given that the market value of total liabilities is $1.6875 million.

are projections, not guarantees

Pro Forma statements:

I, II, and III

The DuPont identity can be used to help managers answer which of the following questions related to a company's operations? I. How many sales dollars are being generated per each dollar of assets (a measure of the firm's asset management)? II. How many dollars of assets have been acquired per each dollar in shareholders' equity (a measure of the firm's mix of financing)? III. How much net profit is being generating per dollar of sales (a measure of the firm's operating efficiency)? IV. Does the company have the ability to meet its debt obligations in a timely manner (a measure of the firm's solvency)?

based on historical cost

The book value of a firm is: