QUIZZES

The Gift Shoppe has total assets of $487,920 and an equity multiplier of 1.47. What is the debt-equity ratio?

.47 (look at quiz)

The potential conflict of interest between a firm's owners and its managers is referred to as which type of conflict?

agency

the financial statement that summarizes a firms accounting value as of a particular date is called the:

balance sheet

Highly liquid assets:

can be sold quickly at close to full value

which one of the following is a measure of long term-solvency?

cash coverage ratio

The ratios that are based on financial statement values and used for comparison purposes are called:

financial ratios

A Sole Proprietorship:

has its profits taxed as personal income

Cash flow to creditors is defined as:

interest paid minus net new borrowing

the primary goal of financial management is most associated with increasing the:

market value of the firm

common sized financial statements present all balance sheet account values as a percentage of:

total assets

Suppose Healey Corp. has the following characteristics: Shares outstanding: 68,500 Current share price: $13.50 Total debt: $438,500 Total cash: $63,100 Based on the formula above, what is the enterprise value of this company?

1,300,150 (look at quiz)

Donner United has total owners' equity of $18,800. The firm has current assets of $23,100, current liabilities of $12,200, and total assets of $36,400. What is the value of the long-term debt?

5,400 (look at quiz)

A fire has destroyed a large percentage of the financial records of the Strongwell Co. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 13.8 percent. Sales were $979,000, the total debt ratio was 0.42, and total debt was $548,000. What is the return on assets? A. 6.92 percent B. 8.00 percent C. 8.45 percent D. 9.03 percent E. 9.29 percent

8.00 percent (look at quiz)

Builder's Outlet just hired a new chief financial officer. To get a feel for the company, she wants to compare the firm's sales and costs over the past three years to determine if any trends are present and also determine where the firm might need to make changes. Which one of the following statements will best suit her purposes?

Common-sized income statement

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

Internal growth rate

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

decrease in the tax rate

Net capital spending is equal to:

ending net fixed assets minus beginning net fixed assets plus depreciation.

One example of a primary market transaction would be the:

sale of 1,000 shares of newly issued stock by Alt Company to Miquel (company issues stocks/bonds)

If a firm has an inventory turnover of 15, the firm:

sells its entire inventory an average if 15 times each year

Theo's BBQ has $48,000 in current assets and $39,000 in current liabilities. Decisions related to these accounts as referred to as:

working capital management