Exam 19: Financial Statement Analysis

The financial statements of Black Barn Company are given below. Note: The common shares are trading in the stock market for $40 each. Refer to the financial statements of Black Barn Company.The firm's return on equity ratio for 2009 is

A firm has a (net profit/pretax profit) ratio of 0.6, a leverage ratio of 2, a (pretax profit/EBIT) of 0.6, an asset turnover ratio of 2.5, a current ratio of 1.5, and a return on sales ratio of 4%.The firm's ROE is

Over a period of 30 years or so, in managing investment funds, Benjamin Graham used the approach of investing in the stocks of companies where the stocks were trading at less than their working capital value.The average return from using this strategy was approximately

The financial statements of Snapit Company are given below. Note: The common shares are trading in the stock market for $100 each. Refer to the financial statements of Snapit Company.The firm's return on sales ratio for 2009 is

The financial statements of Snapit Company are given below. Note: The common shares are trading in the stock market for $100 each. Refer to the financial statements of Snapit Company.The firm's fixed asset turnover ratio for 2009 is

The financial statements of Midwest Tours are given below. Note: The common shares are trading in the stock market for $36 each. Refer to the financial statements of Midwest Tours.The firm's return on equity ratio for 2009 is

The financial statements of Black Barn Company are given below. Note: The common shares are trading in the stock market for $40 each. Refer to the financial statements of Black Barn Company.The firm's market-to-book value for 2009 is

The P/E ratio that is based on a firm's financial statements and reported in the newspaper stock listings is different from the P/E ratio derived from the dividend discount model (DDM) because

Which of the following are issues when dealing with the financial statements of international firms? I) Many countries allow firms to set aside larger contingency reserves than the amounts allowed for Canadian firms. II) Many firms outside Canada use accelerated depreciation methods for reporting purposes, whereas most U.S.firms use straight-line depreciation for reporting purposes. III) Intangibles, such as goodwill, may be amortized over different periods or may be expensed rather than capitalized. IV) There is no way to reconcile the financial statements of non-U.S.firms to GAAP.

A firm has a P/E ratio of 12, an ROE of 13%, and a market-to-book value of

The financial statements of Black Barn Company are given below. Note: The common shares are trading in the stock market for $40 each. Refer to the financial statements of Black Barn Company.The firm's fixed asset turnover ratio for 2009 is