Question 1

Constant dollars are dollars adjusted for inflation to make them comparable over various years.

Accepted Answer

A) True 
 B)False

Question 2

All of the following ratios are used in the calculation of a company's Z-value EXCEPT

Accepted Answer

A)  working capital/total assets. 
B)  retained earnings/total assets. 
C)  current assets/current liabilities. 
D)  market value of equity/total liabilities. 
E)  sales/total assets. 
A)  working capital/total assets. 
B)  retained earnings/total assets. 
C)  current assets/current liabilities. 
D)  market value of equity/total liabilities. 
E)  sales/total assets.

Question 3

Between 1997 and 1999,what percent of the mergers used the pooling approach to account for the value of the companies' stocks?

Accepted Answer

A)  95% 
B)  80% 
C)  55% 
D)  40% 
E)  20% 
A)  95% 
B)  80% 
C)  55% 
D)  40% 
E)  20%

Question 4

Which financial indicator is calculated by the ratio of annual dividends per share to current market price per share?

Accepted Answer

A)  return on equity 
B)  dividend payout ratio 
C)  dividend yield on common stock 
D)  price/earnings ratio 
E)  debt to equity ratio 
A)  return on equity 
B)  dividend payout ratio 
C)  dividend yield on common stock 
D)  price/earnings ratio 
E)  debt to equity ratio

Question 5

One of the most important categories of financial ratios is the group of liquidity ratios.

Accepted Answer

A) True 
 B)False

Question 6

The index of sustainable growth indicates how much of the growth rate of sales can be sustained by internally generated funds.

Accepted Answer

A) True 
 B)False

Question 7

In case analysis,how the company actually dealt with the case problem is the most important part of the solution.

Accepted Answer

A) True 
 B)False

Question 8

A company's annual report from the year of the case can be helpful,but the SEC 10-K form is not beneficial for those conducting a case analysis.

Accepted Answer

A) True 
 B)False

Question 9

In case analysis,it is best to make an exhibit that includes all the financial ratios.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not one of the categories of important financial ratios that are mentioned in the text to help assess an organization's overall financial situation?

Accepted Answer

A)  leverage ratios 
B)  liquidity ratios 
C)  asset management ratios 
D)  activity ratios 
E)  profitability ratios 
A)  leverage ratios 
B)  liquidity ratios 
C)  asset management ratios 
D)  activity ratios 
E)  profitability ratios

Question 11

According to the Yankelovich Partners survey firm,eight out of ten portfolio managers and 75 percent of security analysts use annual reports when making decisions.

Accepted Answer

A) True 
 B)False

Question 12

According to the text,what percentage of portfolio managers uses annual reports when making decisions?

Accepted Answer

A)  20% 
B)  35% 
C)  50% 
D)  60% 
E)  80% 
A)  20% 
B)  35% 
C)  50% 
D)  60% 
E)  80%

Question 13

Fixed asset turnover is what type of financial ratio?

Accepted Answer

A)  liquidity ratio 
B)  profitability ratio 
C)  leverage ratio 
D)  activity ratio 
E)  revenue ratio 
A)  liquidity ratio 
B)  profitability ratio 
C)  leverage ratio 
D)  activity ratio 
E)  revenue ratio

Question 14

A typical financial analysis would compare the firm under study with industry standards.

Accepted Answer

A) True 
 B)False

Question 15

Dollars adjusted for inflation to make them comparable over various years are known as

Accepted Answer

A)  consumer dollars. 
B)  constant dollars. 
C)  consumer inflation. 
D)  constant inflation. 
E)  earning dollars. 
A)  consumer dollars. 
B)  constant dollars. 
C)  consumer inflation. 
D)  constant inflation. 
E)  earning dollars.

Question 16

Key liquidity ratios include the current ratio,quick ratio,and cash ratio.

Accepted Answer

A) True 
 B)False

Question 17

The case method offers the opportunity to move from a narrow,specialized view that emphasizes functional techniques to a broader,less precise analysis of the overall corporation.

Accepted Answer

A) True 
 B)False

Question 18

Which financial ratio shows the return on all of the assets under management's control regardless of source of financing?

Accepted Answer

A)  return on investment 
B)  return on equity 
C)  earnings per share 
D)  gross profit margin 
E)  net profit margin 
A)  return on investment 
B)  return on equity 
C)  earnings per share 
D)  gross profit margin 
E)  net profit margin

Question 19

According to the text,what percentage of security analysts use annual reports when making decisions?

Accepted Answer

A)  20% 
B)  35% 
C)  50% 
D)  75% 
E)  100% 
A)  20% 
B)  35% 
C)  50% 
D)  75% 
E)  100%

Question 20

What are common-size statements?

Accepted Answer

Common-size statements are income statem

Constant dollars are dollars adjusted for inflation to make them comparable over various years.

All of the following ratios are used in the calculation of a company's Z-value EXCEPT

Between 1997 and 1999,what percent of the mergers used the pooling approach to account for the value of the companies' stocks?

Which financial indicator is calculated by the ratio of annual dividends per share to current market price per share?

One of the most important categories of financial ratios is the group of liquidity ratios.

The index of sustainable growth indicates how much of the growth rate of sales can be sustained by internally generated funds.

In case analysis,how the company actually dealt with the case problem is the most important part of the solution.

A company's annual report from the year of the case can be helpful,but the SEC 10-K form is not beneficial for those conducting a case analysis.

In case analysis,it is best to make an exhibit that includes all the financial ratios.

Which of the following is not one of the categories of important financial ratios that are mentioned in the text to help assess an organization's overall financial situation?

According to the Yankelovich Partners survey firm,eight out of ten portfolio managers and 75 percent of security analysts use annual reports when making decisions.

According to the text,what percentage of portfolio managers uses annual reports when making decisions?

Fixed asset turnover is what type of financial ratio?

A typical financial analysis would compare the firm under study with industry standards.

Dollars adjusted for inflation to make them comparable over various years are known as

Key liquidity ratios include the current ratio,quick ratio,and cash ratio.

The case method offers the opportunity to move from a narrow,specialized view that emphasizes functional techniques to a broader,less precise analysis of the overall corporation.

Which financial ratio shows the return on all of the assets under management's control regardless of source of financing?

According to the text,what percentage of security analysts use annual reports when making decisions?

What are common-size statements?

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

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Exam 13: Suggestions for Case Analysis

Constant dollars are dollars adjusted for inflation to make them comparable over various years.

All of the following ratios are used in the calculation of a company's Z-value EXCEPT

Between 1997 and 1999,what percent of the mergers used the pooling approach to account for the value of the companies' stocks?

Which financial indicator is calculated by the ratio of annual dividends per share to current market price per share?

One of the most important categories of financial ratios is the group of liquidity ratios.

The index of sustainable growth indicates how much of the growth rate of sales can be sustained by internally generated funds.

In case analysis,how the company actually dealt with the case problem is the most important part of the solution.

A company's annual report from the year of the case can be helpful,but the SEC 10-K form is not beneficial for those conducting a case analysis.

In case analysis,it is best to make an exhibit that includes all the financial ratios.

Which of the following is not one of the categories of important financial ratios that are mentioned in the text to help assess an organization's overall financial situation?

According to the Yankelovich Partners survey firm,eight out of ten portfolio managers and 75 percent of security analysts use annual reports when making decisions.

According to the text,what percentage of portfolio managers uses annual reports when making decisions?

Fixed asset turnover is what type of financial ratio?

A typical financial analysis would compare the firm under study with industry standards.

Dollars adjusted for inflation to make them comparable over various years are known as

Key liquidity ratios include the current ratio,quick ratio,and cash ratio.

The case method offers the opportunity to move from a narrow,specialized view that emphasizes functional techniques to a broader,less precise analysis of the overall corporation.

Which financial ratio shows the return on all of the assets under management's control regardless of source of financing?

According to the text,what percentage of security analysts use annual reports when making decisions?

What are common-size statements?

Basic Concepts in Strategic Management

Corporate Governance

Social Responsibility and Ethics in Strategic Management

Environmental Scanning and Industry Analysis

Organizational Analysis and Competitive Advantage

Strategy Formulation: Business Strategy

Strategy Formulation: Corporate Strategy

Strategy Formulation: Functional Strategy and Strategic Choice

Strategy Implementation: Global Strategy

Strategy Implementation: Organizing and Structure

Strategy Implementation: Staffing and Directing

Evaluation and Control

Filters