# 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.

Answer

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.

Top of Form

Bottom of Form

Thanks for installing the Bottom of every post plugin by Corey Salzano. Contact me if you need custom WordPress plugins or website design.