Question 1

Look at the following table of data for Key Biscuit Company:
  What must have caused the firm's ROE to drop?

Accepted Answer

A)  The firm began using more debt as a percentage of financing. 
B)  The firm began using less debt as a percentage of financing. 
C)  The compound leverage ratio was less than 1. 
D)  The operating ROA was declining. 
A)  The firm began using more debt as a percentage of financing. 
B)  The firm began using less debt as a percentage of financing. 
C)  The compound leverage ratio was less than 1. 
D)  The operating ROA was declining. C

Question 2

Consider the following information relating to Interceptors Ltd.   Based on the cash flow data in the table, which of the following statements is/are correct?
I. This firm appears to be a good investment because of its steady growth in cash.
II. This firm has only been able to generate growing cash flows by borrowing or selling equity to offset declining operating cash flows.
III. Financing activities have been increasingly important for this firm's operations, at least in the short run.

Accepted Answer

A)  I only 
B)  II and III only 
C)  II only 
D)  I and II only 
A)  I only 
B)  II and III only 
C)  II only 
D)  I and II only B

Question 3

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013.
  What is the net increase or decrease in cash for Haven Hardware for 2013?

Accepted Answer

A)  ($94 000) 
B)  ($88 000) 
C)  $88 000 
D)  $188 000 
A)  ($94 000) 
B)  ($88 000) 
C)  $88 000 
D)  $188 000 C

Question 4

The financial statements of Burnaby Mountain Trading Company are given below.
  Note: The common shares are trading in the share market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's quick ratio for 2008 is ________.

Accepted Answer

A)  1.30 
B)  1.50 
C)  1.69 
D)  2.83 
A)  1.30 
B)  1.50 
C)  1.69 
D)  2.83

Question 5

Consider the following information relating to Interceptors Ltd.   What must cash flow from financing have been in 2008 for Interceptors Ltd.?

Accepted Answer

A)  $5 
B)  $28 
C)  $30 
D)  $33 
A)  $5 
B)  $28 
C)  $30 
D)  $33

Question 6

You are cautiously bullish on the common share of the Wildwood Corporation over the next several months. The current price of the share is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes:
  Ignoring commissions, the cost to establish the bull money spread with calls would be ________.

Accepted Answer

A)  $1 050 
B)  $650 
C)  $400 
D)  $400 income rather than cost 
A)  $1 050 
B)  $650 
C)  $400 
D)  $400 income rather than cost

Question 7

An investor purchases a long call at a price of $2.50. The expiration price is $35.00. If the current share price is $35.10, what is the break-even point for the investor?

Accepted Answer

A)  $32.50 
B)  $35.00 
C)  $37.50 
D)  $37.60 
A)  $32.50 
B)  $35.00 
C)  $37.50 
D)  $37.60

Question 8

The financial statements of Burnaby Mountain Trading Company are given below.
  Note: The common shares are trading in the share market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's leverage ratio for 2008 is ________.

Accepted Answer

A)  1.30 
B)  1.50 
C)  1.69 
D)  2.83 
A)  1.30 
B)  1.50 
C)  1.69 
D)  2.83

Question 9

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013.
  What is the net cash provided by or used in financing activities of Haven Hardware?

Accepted Answer

A)  ($10 000) 
B)  ($120 000) 
C)  $10 000 
D)  $120 000 
A)  ($10 000) 
B)  ($120 000) 
C)  $10 000 
D)  $120 000

Question 10

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013.
  What is the cash at the end of 2013 for Haven Hardware?

Accepted Answer

A)  $6 000 
B)  $94 000 
C)  $736 000 
D)  $188 000 
A)  $6 000 
B)  $94 000 
C)  $736 000 
D)  $188 000

Question 11

A firm has a tax burden of 0.7, a leverage ratio of 1.3, an interest burden of 0.8, and a return on sales ratio of 10%. The firm generates $2.28 in sales per dollar of assets. What is the firm's ROE?

Accepted Answer

A)  12.4% 
B)  14.5% 
C)  16.6% 
D)  17.8% 
A)  12.4% 
B)  14.5% 
C)  16.6% 
D)  17.8%

Question 12

The tax burden of the firm is .4, the interest burden is 0.65, the return on sales is 0.05, the asset turnover is 0.90, and the leverage ratio is 1.35. What is the ROE of the firm?

Accepted Answer

A)  1.58% 
B)  5.68% 
C)  12.20% 
D)  13.33% 
A)  1.58% 
B)  5.68% 
C)  12.20% 
D)  13.33%

Question 13

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013.
  What is the net cash provided by operating activities of Haven Hardware?

Accepted Answer

A)  ($30 000) 
B)  $220 000 
C)  $320 000 
D)  $780 000 
A)  ($30 000) 
B)  $220 000 
C)  $320 000 
D)  $780 000

Question 14

The financial statements of Burnaby Mountain Trading Company are given below   .
Note: The common shares are trading in the share market for $27 each.
Refer to the financial statements of Burnaby Mountain Trading Company. The firm's current ratio for 2008 is ________.

Accepted Answer

A)  1.30 
B)  1.50 
C)  1.69 
D)  2.83 
A)  1.30 
B)  1.50 
C)  1.69 
D)  2.83

Question 15

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013.
  What is the net cash provided by or used in investing activities of Haven Hardware?

Accepted Answer

A)  ($12 000) 
B)  ($62 000) 
C)  $12 000 
D)  $164 000 
A)  ($12 000) 
B)  ($62 000) 
C)  $12 000 
D)  $164 000

Look at the following table of data for Key Biscuit Company: What must have caused the firm's ROE to drop?

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the net increase or decrease in cash for Haven Hardware for 2013?

The financial statements of Burnaby Mountain Trading Company are given below. Note: The common shares are trading in the share market for $27 each. Refer to the financial statements of Burnaby Mountain Trading Company. The firm's quick ratio for 2008 is ________.

Consider the following information relating to Interceptors Ltd. What must cash flow from financing have been in 2008 for Interceptors Ltd.?

An investor purchases a long call at a price of $2.50. The expiration price is $35.00. If the current share price is $35.10, what is the break-even point for the investor?

The financial statements of Burnaby Mountain Trading Company are given below. Note: The common shares are trading in the share market for $27 each. Refer to the financial statements of Burnaby Mountain Trading Company. The firm's leverage ratio for 2008 is ________.

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the net cash provided by or used in financing activities of Haven Hardware?

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the cash at the end of 2013 for Haven Hardware?

A firm has a tax burden of 0.7, a leverage ratio of 1.3, an interest burden of 0.8, and a return on sales ratio of 10%. The firm generates $2.28 in sales per dollar of assets. What is the firm's ROE?

The tax burden of the firm is .4, the interest burden is 0.65, the return on sales is 0.05, the asset turnover is 0.90, and the leverage ratio is 1.35. What is the ROE of the firm?

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the net cash provided by operating activities of Haven Hardware?

The financial statements of Burnaby Mountain Trading Company are given below . Note: The common shares are trading in the share market for $27 each. Refer to the financial statements of Burnaby Mountain Trading Company. The firm's current ratio for 2008 is ________.

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the net cash provided by or used in investing activities of Haven Hardware?

Securities Markets, Efficient Diversification, Risk and Return: Past and Prologue

Capital Pricing, Arbitrage Pricing Theory, Bond Prices, Yields, Efficient Market Hypothesis and Behavioral Finance

Equity Valuation, Managing Bond Portfolios, Macroeconomic and Industry Analysis

Hedge Funds, Futures, Risk Management, Investors and the Investment Process

Portfolio Performance Evaluation

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Exam 4: Financial Statement Analysis, Options and Risk Management

Look at the following table of data for Key Biscuit Company: What must have caused the firm's ROE to drop?

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the net increase or decrease in cash for Haven Hardware for 2013?

The financial statements of Burnaby Mountain Trading Company are given below. Note: The common shares are trading in the share market for $27 each. Refer to the financial statements of Burnaby Mountain Trading Company. The firm's quick ratio for 2008 is ________.

Consider the following information relating to Interceptors Ltd. What must cash flow from financing have been in 2008 for Interceptors Ltd.?

An investor purchases a long call at a price of $2.50. The expiration price is $35.00. If the current share price is $35.10, what is the break-even point for the investor?

The financial statements of Burnaby Mountain Trading Company are given below. Note: The common shares are trading in the share market for $27 each. Refer to the financial statements of Burnaby Mountain Trading Company. The firm's leverage ratio for 2008 is ________.

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the net cash provided by or used in financing activities of Haven Hardware?

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the cash at the end of 2013 for Haven Hardware?

A firm has a tax burden of 0.7, a leverage ratio of 1.3, an interest burden of 0.8, and a return on sales ratio of 10%. The firm generates $2.28 in sales per dollar of assets. What is the firm's ROE?

The tax burden of the firm is .4, the interest burden is 0.65, the return on sales is 0.05, the asset turnover is 0.90, and the leverage ratio is 1.35. What is the ROE of the firm?

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the net cash provided by operating activities of Haven Hardware?

The financial statements of Burnaby Mountain Trading Company are given below . Note: The common shares are trading in the share market for $27 each. Refer to the financial statements of Burnaby Mountain Trading Company. The firm's current ratio for 2008 is ________.

Use the following cash flow data of Haven Hardware for the year ended 31 December 2013. What is the net cash provided by or used in investing activities of Haven Hardware?

Securities Markets, Efficient Diversification, Risk and Return: Past and Prologue

Capital Pricing, Arbitrage Pricing Theory, Bond Prices, Yields, Efficient Market Hypothesis and Behavioral Finance

Equity Valuation, Managing Bond Portfolios, Macroeconomic and Industry Analysis

Hedge Funds, Futures, Risk Management, Investors and the Investment Process

Portfolio Performance Evaluation

Filters