BUS 332 Exam 1: Ch3
A firm has sales of $4,300, net income of $320, total assets of $4,800, and total equity of $2,950. Interest expense is $65. What is the common-size statement value of the interest expense?
1.51 percent
A firm has total assets of $310,100 and net fixed assets of $168,500. The average daily operating costs are $2,980. What is the value of the interval measure?
47.52 days
Big Tree Lumber has earnings per share of $1.36. The firm's earnings have been increasing at an average rate of 2.9 percent annually and are expected to continue doing so. The firm has 21,500 shares of stock outstanding at a price per share of $23.40. What is the firm's PEG ratio?
5.93
A firm has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908. How many dollars worth of sales are generated from every $1 in total assets?
$1.08
A firm has total debt of $4,850 and a debt-equity ratio of .57. What is the value of the total assets?
$13,358.77
Best-Ever Chicken has a debt-equity ratio of .94. Return on assets is 8.5 percent, and total equity is $520,000. What is the net income?
$85,748
A firm has a debt-equity ratio of .57. What is the total debt ratio?
0.36
Uptown Men's Wear has accounts payable of $2,214, inventory of $7,950, cash of $1,263, fixed assets of $8,400, accounts receivable of $3,907, and long-term debt of $4,200. What is the value of the net working capital to total assets ratio?
0.51
A firm has annual sales of $416,000, a price-earnings ratio of 18, and a profit margin of 3.7 percent. There are 12,000 shares of stock outstanding. What is the price-sales ratio?
0.67
Taylor's Men's Wear has a debt-equity ratio of 56 percent, sales of $829,000, net income of $38,300, and total debt of $206,300. What is the return on equity?
10.40 percent
Oscar's Dog House has a profit margin of 5.6 percent, a return on assets of 12.5 percent, and an equity multiplier of 1.49. What is the return on equity?
18.63 percent
Hungry Lunch has net income of $68,710, a price-earnings ratio of 13.7, and earnings per share of $.24. How many shares of stock are outstanding?
286,292
Which one of the following is a source of cash for a non-tax-paying firm?
Increase in common stock
Lenders probably have the most interest in which one of the following sets of ratios?
Long-term debt and times interest earned.
The cash coverage ratio directly measures the ability of a firm to meet which one of its following obligations?
Payment of interest to a lender.
Which one of the following will decrease if a firm can decrease its operating costs, all else constant?
Price-earnings ratio
A common-size income statement is an accounting statement that expresses all of a firm's expenses as a percentage of:
Sales
Tobin's Q relates the market value of a firm's assets to which one of the following?
Today's cost to duplicate those assets