FINA HW2 Click and Drag assignment

Times Interest Earned

How well does company z meet its interest obligations on debt? EBIT/Interest

Which of the following measures investors' expectations of growth in a company?

Price-earnings ratio

If two traders agree to exchange currencies tomorrow based on the exchange rate today, which exchange rate will apply?

Spot exchange rate

Current Ratio

How many times can company Y pay its short-term liabilities with its short-term assets? Current Assets/Current Liabilities

Profit Margin

How much income did Company X generate per dollar worth of sales? Net Income/Sales

Return on Assets

How much income did Company Y generate per dollar worth of assets? Net Income/Total assets

Total Debt Ratio

How much of company Z's assets are financed with debt? Total assets-Total equity/Total assets

Total Asset Turnover

How much sales did Company Z generate per dollar worth of assets? Sales/Total Assets

Return on Equity

How well did the stockholders do with their investment in company Z over the last year? Net Income/Equity

Which of the following pairs matches the nickname of the foreign bond with the country of issue?

Rembrandt: Netherlands

If two parties agree to exchange U.S. dollars for Japanese yen, this agreement is called a:

Swap

Eurobond

1. A bond issued in multiple countries but denominated in a single currency. 2. Traded mostly in London.

ADR - American Depository Receipt

1. A security issued in the U.S. representing a share of a foreign stock. 2. Allows foreign stock to be traded in U.S. markets.

Swap

1. An agreement to exchange a floating-rate payment for a fixed one. 2. An agreement to exchange one currency for another.

Foreign Bonds

1. Bonds issued in a single country, denominated in that country's currency, but not issued by a domestic firm in that country. 2. Yankee bonds, Samurai bonds, and Bulldog bonds.

Gilts

1. British and Irish government securities 2. Issues of local British authorities

Eurocurrency

1. Money deposited in a financial center outside of the country whose currency is involved. 2. Dollar-denominated deposits in a bank outside the U.S. is one form.

LIBOR

1. The rate most international banks charge for overnight Eurodollar deposits. 2. A cornerstone in the pricing of money market issues and other short-term debt.

Cross-Rate

1. the implicit exchange between two currencies 2. When two non-U.S. currencies are quoted in the U.S. dollar.

Days' Sales in Inventory

365/inventory turnover

Days' Sales in Receivables

365/receivables turnover

An increase in the net working capital ratio would cause which ratio to decrease, all else equal?

Current ratio

Which one of the following successful strategies will increase the return on assets, all else equal?

Decrease the number of days' sales in inventory

The price of a foreign currency expressed in U.S. dollars is called a(n):

Exchange Rate

The ratio that captures information about property, plant, and equipment utilization is

Fixed asset turnover

A U.S. company has excess cash earned in Italy. To convert these funds to USD, they would access the:

Foreign Exchange Market (FOREX)

Two traders agree today to exchange currencies in six months. This is considered a:

Forward Trade

Inventory Turnover

How long does company Y hold its products before it sells them to customers? Cost of goods sold/Inventory

Receivables Turnover

How long does it take Company X to get paid for its services? Sales/Accounts Receivable

Accounts Payable Turnover

How long does it take company Y to pay its bills? Cost of goods sold/Accounts payable