Question 1

Luther's EBIT coverage ratio for the year ending December 31,2009 is closest to:

Accepted Answer

A) 1.64 
B) 1.78 
C) 1.98 
D) 2.19 
A) 1.64 
B) 1.78 
C) 1.98 
D) 2.19

Question 2

Perrigo's book value of equity is closest to:

Accepted Answer

A) $952.16 million 
B) $3580.14 million 
C) $4168.06 million 
D) $4425.15 million 
A) $952.16 million 
B) $3580.14 million 
C) $4168.06 million 
D) $4425.15 million

Question 3

Use the tables for the question(s)below.
Consider the following financial information:      
-For the year ending December 31,2009 Luther's cash flow from operating activities is:

Accepted Answer

Operating cash flow = NI + Dep

Question 4

For the year ending December 31,2009 Luther's cash flow from operating activities is:

Accepted Answer

A) 9.4 
B) -18.8 
C) 47.2 
D) 40.0 
A) 9.4 
B) -18.8 
C) 47.2 
D) 40.0

Question 5

Details of acquisitions,spin-offs,leases,taxes,and risk management activities are given:

Accepted Answer

A) in the management discussion and analysis. 
B) in the Securities and Exchange Commission's commentary. 
C) in the auditor's report. 
D) in the notes to the financial statements. 
A) in the management discussion and analysis. 
B) in the Securities and Exchange Commission's commentary. 
C) in the auditor's report. 
D) in the notes to the financial statements.

Question 6

On the balance sheet,current maturities of long-term debt appears:

Accepted Answer

A) in the Stockholders' Equity section. 
B) in the Operating Expenses section. 
C) in the Current Assets section. 
D) in the Current Liabilities section. 
A) in the Stockholders' Equity section. 
B) in the Operating Expenses section. 
C) in the Current Assets section. 
D) in the Current Liabilities section.

Question 7

Which of the following is NOT a financial statement that every public company is required to produce?

Accepted Answer

A) Income Statement 
B) Statement of Sources and Uses of Cash 
C) Balance Sheet 
D) Statement of Stockholders' Equity 
A) Income Statement 
B) Statement of Sources and Uses of Cash 
C) Balance Sheet 
D) Statement of Stockholders' Equity

Question 8

If Moon Corporation's gross margin declined,which of the following is TRUE?

Accepted Answer

A) Its cost of goods sold increased. 
B) Its cost of goods sold as a percent of sales increased. 
C) Its sales increased. 
D) Its net profit margin was unaffected by the decline. 
A) Its cost of goods sold increased. 
B) Its cost of goods sold as a percent of sales increased. 
C) Its sales increased. 
D) Its net profit margin was unaffected by the decline.

Question 9

Luther's earnings before interest,taxes,depreciation,and amortization (EBITDA)for the year ending December 31,2009 is closest to:

Accepted Answer

A) 19.7 million 
B) 37.6 million 
C) 41.2 million 
D) 44.8 million 
A) 19.7 million 
B) 37.6 million 
C) 41.2 million 
D) 44.8 million

Question 10

U.S.public companies are required to file their annual financial statements with the U.S.Securities and Exchange Commission on which form?

Accepted Answer

A) 10-A 
B) 10-K 
C) 10-Q 
D) 10-SEC 
A) 10-A 
B) 10-K 
C) 10-Q 
D) 10-SEC

Question 11

Use the table for the question(s)below.
Consider the following balance sheet:    
-What is Luther's net working capital in 2008?

Accepted Answer

A) $12 million 
B) $27 million 
C) $39 million 
D) $63.6 million 
A) $12 million 
B) $27 million 
C) $39 million 
D) $63.6 million

Question 12

Luther Corporation's total sales for 2009 were $610.1,and gross profit was $109.0.Accounts payable days for 2009 is closest to:

Accepted Answer

A) 27.5 
B) 5.71 
C) 52.4 
D) 63.8 
A) 27.5 
B) 5.71 
C) 52.4 
D) 63.8

Question 13

The Sarbanes-Oxley Act (SOX)was passed by Congress in 2002,in response to:

Accepted Answer

A) financial scandals,including WorldCom and Enron. 
B) financial scandals,including Bernie Madoff and AIG. 
C) financial scandals,including General Motors and Chrysler. 
D) the Troubled Asset Relief Program (TARP). 
A) financial scandals,including WorldCom and Enron. 
B) financial scandals,including Bernie Madoff and AIG. 
C) financial scandals,including General Motors and Chrysler. 
D) the Troubled Asset Relief Program (TARP).

Question 14

Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding.Its book value Debt -Equity Ratio for 2009 is closest to:

Accepted Answer

A) 2.29 
B) 0.31 
C) 1.89 
D) 0.37 
A) 2.29 
B) 0.31 
C) 1.89 
D) 0.37

Question 15

Assuming that Luther has no convertible bonds outstanding,then for the year ending December 31,2009 Luther's diluted earnings per share are closest to:

Accepted Answer

A) $1.01 
B) $1.04 
C) $1.28 
D) $1.33 
A) $1.01 
B) $1.04 
C) $1.28 
D) $1.33

Question 16

If in 2009 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then what is Luther's Enterprise Value?

Accepted Answer

A) -$63.3 million 
B) $353.1 million 
C) $389.7 million 
D) $516.9 million 
A) -$63.3 million 
B) $353.1 million 
C) $389.7 million 
D) $516.9 million

Question 17

Use the following information for ECE incorporated:
Assets $200 million
Shareholder Equity $100 million
Sales $300 million
Net Income $15 million
Interest Expense $2 million
-If ECE's return on assets (ROA)is 12%,then ECE's net income is:

Accepted Answer

A) $6 million 
B) $12 million 
C) $22 million 
D) $36 million 
A) $6 million 
B) $12 million 
C) $22 million 
D) $36 million

Question 18

If in 2009 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then Luther's Market-to-book ratio would be closest to:

Accepted Answer

A) 0.39 
B) 0.76 
C) 1.29 
D) 2.57 
A) 0.39 
B) 0.76 
C) 1.29 
D) 2.57

Question 19

If on December 31,2008 Luther has 8 million shares outstanding trading at $15 per share,then what is Luther's enterprise value?

Accepted Answer

Enterprise value = Market value of equit

Question 20

Use the table for the question(s)below.
Consider the following balance sheet:    
-Luther Corporation's cash ratio for 2009 is closest to:

Accepted Answer

A) 1.19 
B) 10.6 
C) 0.44 
D) 0.41 
A) 1.19 
B) 10.6 
C) 0.44 
D) 0.41

Exam 2: Introduction to Financial Statement Analysis

Luther's EBIT coverage ratio for the year ending December 31,2009 is closest to:

Perrigo's book value of equity is closest to:

Use the tables for the question(s)below. Consider the following financial information: -For the year ending December 31,2009 Luther's cash flow from operating activities is:

For the year ending December 31,2009 Luther's cash flow from operating activities is:

Details of acquisitions,spin-offs,leases,taxes,and risk management activities are given:

On the balance sheet,current maturities of long-term debt appears:

Which of the following is NOT a financial statement that every public company is required to produce?

If Moon Corporation's gross margin declined,which of the following is TRUE?

Luther's earnings before interest,taxes,depreciation,and amortization (EBITDA)for the year ending December 31,2009 is closest to:

U.S.public companies are required to file their annual financial statements with the U.S.Securities and Exchange Commission on which form?

Use the table for the question(s)below. Consider the following balance sheet: -What is Luther's net working capital in 2008?

Luther Corporation's total sales for 2009 were $610.1,and gross profit was $109.0.Accounts payable days for 2009 is closest to:

The Sarbanes-Oxley Act (SOX)was passed by Congress in 2002,in response to:

Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding.Its book value Debt -Equity Ratio for 2009 is closest to:

Assuming that Luther has no convertible bonds outstanding,then for the year ending December 31,2009 Luther's diluted earnings per share are closest to:

If in 2009 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then what is Luther's Enterprise Value?

Use the following information for ECE incorporated: Assets $200 million Shareholder Equity $100 million Sales $300 million Net Income $15 million Interest Expense $2 million -If ECE's return on assets (ROA)is 12%,then ECE's net income is:

If in 2009 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then Luther's Market-to-book ratio would be closest to:

If on December 31,2008 Luther has 8 million shares outstanding trading at $15 per share,then what is Luther's enterprise value?

Use the table for the question(s)below. Consider the following balance sheet: -Luther Corporation's cash ratio for 2009 is closest to:

The Corporation

Financial Decision Making and the Law of One Price

The Time Value of Money

Interest Rates

Valuing Bonds

Investment Decision Rules

Fundamentals of Capital Budgeting

Valuing Stocks

Capital Markets and the Pricing of Risk

Optimal Portfolio Choice and the Capital Asset Pricing Model

Estimating the Cost of Capital

Investor Behavior and Capital Market Efficiency

Capital Structure in a Perfect Market

Debt and Taxes

Financial Distress,managerial Incentives,and Information

Payout Policy

Capital Budgeting and Valuation With Leverage

Valuation and Financial Modeling: a Case Study

Financial Options

Option Valuation

Real Options

Raising Equity Capital

Debt Financing

Leasing

Working Capital Management

Short-Term Financial Planning

Mergers and Acquisitions

Corporate Governance

Risk Management

International Corporate Finance

Filters