Exam 2: Introduction to Financial Statement Analysis

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:

The DuPont Identity expresses the firm's ROE in terms of:

Use the table for the question(s) below. Consider the following balance sheet: -Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding. Its excess cash in 2009 is $23.4. Its Debt-to-Enterprise Value Ratio in 2009 is closest to:

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

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 debt to equity ratio is closest to:

Luther's price - earnings ratio (P/E) for the year ending December 31, 2009 is closest to:

The firm's equity multiplier measures:

Use the table for the question(s) below. Consider the following income statement and other information: -Luther's Operating Margin for the year ending December 31, 2008 is closest to:

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 reported $15 million in net income, then ECE's Return on Equity (ROE) is:

A 30 year mortgage loan is a:

Calculate Luther's return of equity (ROE), return of assets (ROA), and price-to-earnings ratio (P/E) for the year ending December 31, 2008.

If Moon Corporation has an increase in sales, which of the following would result in no change in its EBIT margin?

The Sarbanes-Oxley Act (SOX) overhauled incentives and the independence in the auditing process by:

The firm's assets and liabilities at a given point in time are reported on the firm's:

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

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 debt to equity ratio is closest to:

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

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

Use the table for the question(s) below. Consider the following balance sheet: -Luther Corporation's total sales for 2009 were $610.1, and gross profit was $109.0. Inventory days for 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: