# Fin101 Exam Set 1

Question 1 Blackstone, Inc., has net income of \$8,815, a tax rate of 24%, and interest expense of \$732. What is the times interest earned ratio? Enter your answer rounded off to two decimal points.

Question 2 A firm has total assets of \$682,000 and total equity of \$424,000. What is the debt-equity ratio?

Answer 1.61 0.61 1.64 0.62

Question 3 If the debt ratio is 0.60, the Debt/Equity Ratio is:

Answer 1.25 0.25 1.20 0.20 0.80 1.5

Question 4 The Jamestown Group has equity of \$421,000, sales of \$792,000, and a profit margin of 6 percent. What is the return on equity?

Answer 8.87 percent 6.19 percent 11.29 percent 10.27 percent 9.37 percent

Question 5 ABC has total sales of \$211, assets of \$80, return on equity of 23%, and net profit margin of 5%. What is the debt ratio? Enter you answer in percentages rounded off to two decimal points. Do not enter % in the answer box. Answer 1 points

Question 6 XYZ earned a net profit margin of 7.2% last year and had an equity multiplier of 2.3. If its total assets are \$114 million and its sales are 170 million, what is the firm’s return on assets? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. Answer 1 points

Question 7 ABC’s balance sheet indicates a book value of shareholders’ equity of \$874,129. The firm’s earning per share are \$2.5 and the price-earnings ratio is 9.97. If there are 58,364 shares outstanding, what is the market-to-book ratio? Enter your answer rounded off to two decimal points. Hint: Market value per share is same as market price per share Answer 1 points

Question 8 If the debt ratio is 0.20, the Equity Multiplier is: Answer 1.25 0.25 1.20 0.20 0.80 1.5 1 points

Question 9 If the Debt/Equity Ratio is 0.80. What is the Debt Ratio? Answer 0.40 0.375 0.60 1 o.4444 1 points

Question 10 If the Debt/Equity Ratio is 0.50. What is the Debt Ratio? Answer 0.50 0.375 0.60 1 o.3333 1 points

Question 11 ABC’s balance sheet indicates a book value of shareholders’ equity of \$742,049. The firm’s earning per share are \$3.5 and the price-earnings ratio is 11.82. If there are 43,418 shares outstanding, what is the market value per share? Enter your answer rounded off to two decimal points. Do not enter \$ in the answer box. Hint: Market value per share is same as market price per share. Answer 1 points

Question 12 If the debt ratio is 0.75, the Debt/Equity Ratio is: Answer 0.75 0.25 1 5 1.75 3 1 points

Question 13 ABC, Inc., has a market-to-book ratio of 3, net income of \$88,564, a book value per share of \$22.3, and 54,494 shares of stock outstanding. What is the price-earnings ratio? Enter your answer rounded off to two decimal points. Answer 1 points

Question 14 ABC Corporation has the following ratios: Total Asset Turnover= 1.6 Total debt to total assets= 0.5 Current Ratio= 1.7 Current Liabilities= \$2,000,000 Sales = \$16,000,000 What is the amount of current assets? Answer 2,000,000 3,200,000 3,400,000 1,000,000 1 points

Question 15 If the debt ratio is 0.80, the Equity Multiplier is: Answer 0.8 0.2 1 5 1.8 4 1 points

Question 16 A firm has sales of \$350,000, a profit margin of 6 percent, a total asset turnover rate of 1.25, and an equity multiplier of 1.4. What is the return on equity? Answer 10.50 percent 7.50 percent 7.75 percent 11.11 percent 5.36 percent 1 points

Question 17 If the Debt/Equity Ratio is 0.60. What is the Debt Ratio? Answer 0.40 0.375 0.60 1 o.4444 1 points

Question 18 Top Sound, Inc., has total assets of \$212,000, a debt-equity ratio of .6, and net income of \$9,500. What is the return on equity? Answer 6.87 percent 7.17 percent 7.34 percent 7.50 percent 7.67 percent 1 points

Question 19 Toast and Butter, Inc., has total assets of \$712,000 and an equity multiplier of 1.6. What is the debt-equity ratio? Answer 0.60 0.67 0.63 1.60 1.67 1 points

Question 20 If Roten, Inc., has a equity multiplier of 1.75, total asset turnover of 1.30, and profit margin of 8.5 percent, what is the return on equity (ROE)? Answer 19.34% 2.275% 1.75% 14.875% 1 points

Question 21 A firm has total equity of \$70,312.50, a profit margin of 8 percent, an equity multiplier of 1.6, and a total asset turnover of 1.3. What is the amount of the firm s sales? Answer \$91,406 \$112,500 \$121,500 \$137,500 \$146,250 1 points

Question 22 ABC earned a net profit margin of 6.7% last year and had an equity multiplier of 2.8. If its total assets are \$105 million and its sales are 123 million, what is the firm’s return on equity? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. Answer 1 points

Question 23 XYZ has total sales of \$200, assets of \$89, return on equity of 26%, and net profit margin of 8%. What is the amount of equity? Enter you answer rounded off to two decimal points. Do not enter \$ in the answer box. Answer 1 points

Question 24 Smith Corporation has current assets of \$11,400, inventories of \$4,000, and a current ratio of 2.6. What is Smith s acid test ratio? Assume pre-paid expenses is zero. Answer 1.69 0.54 0.74 1.35 1 points

Question 25 The ability of the firm to pay off short-term obligations as they come due is indicated by: Answer My Grade Point Average Turnover Ratios Liquidity Ratios Profitability Ratios 1 points

Question 26 The Baker s Dozen has current liabilities of \$5,600, net working capital of \$2,100, inventory of \$3,900, and sales of \$13,500. What is the quick ratio? Assume pre-paid expenses are zero. Answer 0.68 0.70 1.38 1.47 2.08 1 points

Question 27 Wexford Hotels has sales of \$289,600, depreciation of \$21,400, interest of \$1,300, Operating Income of \$23,269.70, and a tax rate of 34 percent. What is the times interest earned ratio? Answer 20 17.9 18.5 16 19.8 1 points

Question 28 XYZ earned a net profit margin of 4.7% last year and had an equity multiplier of 3.1. If its total assets are \$114 million and its sales are 163 million, what is the firm’s debt ratio? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. Answer 1 points

Question 29 ABC’s balance sheet indicates a book value of shareholders’ equity of \$864,051. The firm’s earning per share are \$3.4 and the price-earnings ratio is 12.5. If there are 49,181 shares outstanding, what is the book value per share? Enter your answer rounded off to two decimal points. Do not enter \$ in the answer box. Hint: Market value per share is same as market price per share Answer 1 points

Question 30 A firm has net working capital of \$1,100 and current liabilities of \$2,800. What is the current ratio? Answer .98 2.56 .39 .72 1.39 1 points

Question 31 ABC’s Balance Sheet lists Current Assets of \$300, Current Liabilities of \$200, Fixed Assets of \$700, Long-Term Debt of \$400. ABC has 200 shares outstanding. What is the market-to-book ratio (MTB) if the market price per share is \$8? Answer 4 times 400 times 2 times 8 times 0.25 times 1 points

Question 32 ABC Inc. recently reported \$531 of net income. Its EBIT was \$1,034, and its tax rate was 32%. What is the interest expense? Hints: Start by writing down the headings for the income statement and then fill in the missing values. Work your way from bottom up. EBT=NI/(1-tax rate) Note: Enter your answer rounded off to two decimal points. Do not enter \$ in the answer box. For example, if your answer is \$12.345 then enter as 12.35 in the answer box.

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