Question 1

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 2

Which of the following statements regarding the income statement is INCORRECT?

Accepted Answer

A)  The income statement shows the earnings and expenses at a given point in time. 
B)  The income statement shows the flow of earnings and expenses generated by the firm between two dates. 
C)  The last or "bottom" line of the income statement shows the firm's net income. 
D)  The first line of an income statement lists the revenues from the sales of products or services. 
A)  The income statement shows the earnings and expenses at a given point in time. 
B)  The income statement shows the flow of earnings and expenses generated by the firm between two dates. 
C)  The last or "bottom" line of the income statement shows the firm's net income. 
D)  The first line of an income statement lists the revenues from the sales of products or services.

Question 3

What are the four financial statements that all public companies must produce?

Accepted Answer

1.Balance Sheet
2.In

Question 4

Use the table for the question(s) below.
Consider the following balance sheet:
    
-When using the book value of equity,the debt to equity ratio for Luther in 2009 is closest to:

Accepted Answer

A)  0.43 
B)  2.29 
C)  2.98 
D)  3.57 
A)  0.43 
B)  2.29 
C)  2.98 
D)  3.57

Question 5

Use the table for the question(s) below.
Consider the following balance sheet:
    
-If in 2009 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then using the market value of equity,the debt to equity ratio for Luther in 2009 is closest to:

Accepted Answer

A)  1.47 
B)  1.78 
C)  2.31 
D)  4.07 
A)  1.47 
B)  1.78 
C)  2.31 
D)  4.07

Question 6

Use the information for the question(s) below.
In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares outstanding, a market-to-book ratio of 3.76. In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million.
-Perrigo's earnings per share (EPS)is closest to:

Accepted Answer

A)  $0.19 
B)  $1.79 
C)  $2.81 
D)  $3.76 
A)  $0.19 
B)  $1.79 
C)  $2.81 
D)  $3.76

Question 7

If Firm A and Firm B are in the same industry and use the same production method,and Firm A's asset turnover is higher than that of Firm B,then all else equal we can conclude:

Accepted Answer

A)  Firm A is more efficient than Firm B. 
B)  Firm A has a lower dollar amount of assets than Firm B. 
C)  Firm A has higher sales than Firm B. 
D)  Firm A has a lower ROE than Firm B. 
A)  Firm A is more efficient than Firm B. 
B)  Firm A has a lower dollar amount of assets than Firm B. 
C)  Firm A has higher sales than Firm B. 
D)  Firm A has a lower ROE than Firm B.

Question 8

Which of the following balance sheet equations is INCORRECT?

Accepted Answer

A)  Assets - Liabilities = Shareholders' Equity 
B)  Assets = Liabilities + Shareholders' Equity 
C)  Assets - Current Liabilities = Long Term Liabilities 
D)  Assets - Current Liabilities = Long Term Liabilities + Shareholders' Equity 
A)  Assets - Liabilities = Shareholders' Equity 
B)  Assets = Liabilities + Shareholders' Equity 
C)  Assets - Current Liabilities = Long Term Liabilities 
D)  Assets - Current Liabilities = Long Term Liabilities + Shareholders' Equity

Question 9

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

Question 10

Use the information for the question(s) below.
In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares outstanding, a market-to-book ratio of 3.76. In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million.
-Perrigo's market capitalization is closest to:

Accepted Answer

A)  $952.16 million 
B)  $3,580.14 million 
C)  $4,168.06 million 
D)  $4,425.15 million 
A)  $952.16 million 
B)  $3,580.14 million 
C)  $4,168.06 million 
D)  $4,425.15 million

Question 11

Use the information for the question(s) below.
In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares outstanding, a market-to-book ratio of 3.76. In addition, PRGO had $845.01 million in outstanding debt, $163.82 million in net income, and cash of $257.09 million.
-The firm's revenues and expenses over a period of time are reported on the firm's:

Accepted Answer

A)  income statement or statement of financial performance. 
B)  income statement or statement of financial position. 
C)  balance sheet or statement of financial performance. 
D)  balance sheet or statement of financial position. 
A)  income statement or statement of financial performance. 
B)  income statement or statement of financial position. 
C)  balance sheet or statement of financial performance. 
D)  balance sheet or statement of financial position.

Question 12

Which of the following adjustments is NOT correct if you are trying to calculate cash flow from financing activities?

Accepted Answer

A)  Add dividends paid 
B)  Add any increase in long term borrowing 
C)  Add any increase in short-term borrowing 
D)  Add proceeds from the sale of stock 
A)  Add dividends paid 
B)  Add any increase in long term borrowing 
C)  Add any increase in short-term borrowing 
D)  Add proceeds from the sale of stock

Question 13

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

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

Which of the following statements regarding the income statement is INCORRECT?

What are the four financial statements that all public companies must produce?

Use the table for the question(s) below. Consider the following balance sheet: -When using the book value of equity,the debt to equity ratio for Luther in 2009 is closest to:

Use the table for the question(s) below. Consider the following balance sheet: -If in 2009 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then using the market value of equity,the debt to equity ratio for Luther in 2009 is closest to:

If Firm A and Firm B are in the same industry and use the same production method,and Firm A's asset turnover is higher than that of Firm B,then all else equal we can conclude:

Which of the following balance sheet equations is INCORRECT?

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

Which of the following adjustments is NOT correct if you are trying to calculate cash flow from financing activities?

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

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

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Exam 2: Introduction to Financial Statement Analysis

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

Which of the following statements regarding the income statement is INCORRECT?

What are the four financial statements that all public companies must produce?

Use the table for the question(s) below. Consider the following balance sheet: -When using the book value of equity,the debt to equity ratio for Luther in 2009 is closest to:

Use the table for the question(s) below. Consider the following balance sheet: -If in 2009 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then using the market value of equity,the debt to equity ratio for Luther in 2009 is closest to:

If Firm A and Firm B are in the same industry and use the same production method,and Firm A's asset turnover is higher than that of Firm B,then all else equal we can conclude:

Which of the following balance sheet equations is INCORRECT?

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

Which of the following adjustments is NOT correct if you are trying to calculate cash flow from financing activities?

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

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

Filters