Exam 14: Financial Statement Analysis

The financial statements of Burnaby Mountain Trading Company are given below. Note: The common shares are trading in the stock market for $27 each. -Refer to the financial statements of Burnaby Mountain Trading Company.The firm's return on equity ratio for 2008 is _________.Please keep in mind that when a ratio involves both income statement and balance sheet numbers,the balance sheet numbers for the beginning and end of the year must be averaged.

(Multiple Choice)

4.8/5

(36)

Question 21

The financial statements of Flathead Lake Manufacturing Company are given below: Note: The common shares are trading in the stock market for $15 per share -Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's P/E ratio for 2007 is _________.

(Multiple Choice)

4.9/5

(25)

Question 22

If a firm has a positive tax rate,a positive operating ROA,and the interest rate on debt is the same as the operating ROA,then operating ROA will be _________.

(Multiple Choice)

4.7/5

(35)

Question 23

Operating ROA is calculated as __ while ROE is calculated as _.

(Multiple Choice)

4.8/5

(41)

Question 24

The financial statements of Flathead Lake Manufacturing Company are given below: Note: The common shares are trading in the stock market for $15 per share -Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's cash flow from operating activities for 2007 was _______.

(Multiple Choice)

4.9/5

(33)

Question 25

The financial statements of Flathead Lake Manufacturing Company are given below: Note: The common shares are trading in the stock market for $15 per share -Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's return on equity ratio for 2005 is _________.Please keep in mind that when a ratio involves both income statement and balance sheet numbers,the balance sheet numbers for the beginning and end of the year must be averaged.

(Multiple Choice)

4.9/5

(40)

Question 26

A firm purchases goods on credit worth $90.The same firm pays off $100 in old credit purchases.An investment is made via the purchase of a new facility and equity is issued in the amount of $180 to pay for the purchase.What is the change in net cash provided by investments?

(Multiple Choice)

4.9/5

(41)

Question 27

The practice of 'selling' large quantities of goods to customers in order to get quarterly sales up while allowing these customers to return the goods next quarter is termed _____________.

(Multiple Choice)

4.9/5

(37)

Question 28

The financial statements of Burnaby Mountain Trading Company are given below. Note: The common shares are trading in the stock market for $27 each. -Refer to the financial statements of Burnaby Mountain Trading Company.The firm's asset turnover ratio for 2008 is _________.Please keep in mind that when a ratio involves both income statement and balance sheet numbers,the balance sheet numbers for the beginning and end of the year must be averaged.

(Multiple Choice)

4.8/5

(26)

Question 29

Which of the following transactions will result in a decrease in cash flow from investments?

(Multiple Choice)

4.9/5

(35)

Question 30

Firm A acquires Firm B when Firm B has a book value of assets of $155 million and a book value of liabilities of $35 million.Firm A actually pays $175 million for Firm B. This purchase would result in goodwill for Firm A equal to

(Multiple Choice)

4.8/5

(35)

Question 31

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

(Multiple Choice)

4.8/5

(33)

Question 32

What must cash flow from financing have been in 2008 for Interceptors,Inc.?

(Multiple Choice)

4.9/5

(39)

Question 33

The ABS company has a capital base of $100 million,an opportunity cost of capital (k)of 15%,a return on assets (ROA)of 9% and a return on equity (ROE)of 18%.What is the economic value added (EVA)for ABS?

(Multiple Choice)

4.8/5

(40)

Question 34

Which of the following would result in a cash inflow under the heading cash flow from investing in the statement of cash flows?

(Multiple Choice)

4.8/5

(34)

Question 35

Depreciation expense is in what broad category of expenditures?

(Multiple Choice)

5.0/5

(42)

Question 36

The financial statements of Burnaby Mountain Trading Company are given below. Note: The common shares are trading in the stock market for $27 each. -Refer to the financial statements of Burnaby Mountain Trading Company.The firm's fixed asset turnover ratio for 2008 is _________.Please keep in mind that when a ratio involves both income statement and balance sheet numbers,the balance sheet numbers for the beginning and end of the year must be averaged.

(Multiple Choice)

5.0/5

(44)

Question 37

A firm increases its financial leverage when its ROA is greater than the cost of debt.Everything else equal this change will probably increase the firm's _______. I.beta II.earnings variability over the business cycle III.ROE IV.stock price

(Multiple Choice)

4.8/5

(44)

Question 38

A firm has a (net profit/pretax profit)ratio of 0.6,a leverage ratio of 1.5,a (pretax profit/EBIT)of 0.7,an asset turnover ratio of 4,a current ratio of 2,and a return on sales ratio of 6%.Its ROE is _________.

(Multiple Choice)

4.7/5

(33)

Question 39

The process of decomposing ROE into a series of component ratios is called ______________.

(Multiple Choice)

4.7/5

(38)

Question 40

Showing 21 - 40 of 84

The financial statements of Flathead Lake Manufacturing Company are given below: Note: The common shares are trading in the stock market for $15 per share -Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's P/E ratio for 2007 is _________.

If a firm has a positive tax rate,a positive operating ROA,and the interest rate on debt is the same as the operating ROA,then operating ROA will be _________.

Operating ROA is calculated as __ while ROE is calculated as _.

The financial statements of Flathead Lake Manufacturing Company are given below: Note: The common shares are trading in the stock market for $15 per share -Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's cash flow from operating activities for 2007 was _______.

A firm purchases goods on credit worth $90.The same firm pays off $100 in old credit purchases.An investment is made via the purchase of a new facility and equity is issued in the amount of $180 to pay for the purchase.What is the change in net cash provided by investments?

The practice of 'selling' large quantities of goods to customers in order to get quarterly sales up while allowing these customers to return the goods next quarter is termed _____________.

Which of the following transactions will result in a decrease in cash flow from investments?

Firm A acquires Firm B when Firm B has a book value of assets of $155 million and a book value of liabilities of $35 million.Firm A actually pays $175 million for Firm B. This purchase would result in goodwill for Firm A equal to

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

What must cash flow from financing have been in 2008 for Interceptors,Inc.?

The ABS company has a capital base of $100 million,an opportunity cost of capital (k)of 15%,a return on assets (ROA)of 9% and a return on equity (ROE)of 18%.What is the economic value added (EVA)for ABS?

Which of the following would result in a cash inflow under the heading cash flow from investing in the statement of cash flows?

Depreciation expense is in what broad category of expenditures?

A firm increases its financial leverage when its ROA is greater than the cost of debt.Everything else equal this change will probably increase the firm's _______. I.beta II.earnings variability over the business cycle III.ROE IV.stock price

A firm has a (net profit/pretax profit)ratio of 0.6,a leverage ratio of 1.5,a (pretax profit/EBIT)of 0.7,an asset turnover ratio of 4,a current ratio of 2,and a return on sales ratio of 6%.Its ROE is _________.

The process of decomposing ROE into a series of component ratios is called ______________.

Investments: Background and Issues

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Risk and Return: Past and Prologue

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Bond Prices and Yields

Managing Bond Portfolios

Macroeconomic and Industry Analysis

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Exam 14: Financial Statement Analysis

The financial statements of Flathead Lake Manufacturing Company are given below: Note: The common shares are trading in the stock market for $15 per share -Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's P/E ratio for 2007 is _________.

If a firm has a positive tax rate,a positive operating ROA,and the interest rate on debt is the same as the operating ROA,then operating ROA will be _________.

Operating ROA is calculated as __________ while ROE is calculated as _________.

The financial statements of Flathead Lake Manufacturing Company are given below: Note: The common shares are trading in the stock market for $15 per share -Refer to the financial statements of Flathead Lake Manufacturing Company.The firm's cash flow from operating activities for 2007 was _______.

A firm purchases goods on credit worth $90.The same firm pays off $100 in old credit purchases.An investment is made via the purchase of a new facility and equity is issued in the amount of $180 to pay for the purchase.What is the change in net cash provided by investments?

The practice of 'selling' large quantities of goods to customers in order to get quarterly sales up while allowing these customers to return the goods next quarter is termed _____________.

Which of the following transactions will result in a decrease in cash flow from investments?

Firm A acquires Firm B when Firm B has a book value of assets of $155 million and a book value of liabilities of $35 million.Firm A actually pays $175 million for Firm B. This purchase would result in goodwill for Firm A equal to

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

What must cash flow from financing have been in 2008 for Interceptors,Inc.?

The ABS company has a capital base of $100 million,an opportunity cost of capital (k)of 15%,a return on assets (ROA)of 9% and a return on equity (ROE)of 18%.What is the economic value added (EVA)for ABS?

Which of the following would result in a cash inflow under the heading cash flow from investing in the statement of cash flows?

Depreciation expense is in what broad category of expenditures?

A firm increases its financial leverage when its ROA is greater than the cost of debt.Everything else equal this change will probably increase the firm's _______. I.beta II.earnings variability over the business cycle III.ROE IV.stock price

A firm has a (net profit/pretax profit)ratio of 0.6,a leverage ratio of 1.5,a (pretax profit/EBIT)of 0.7,an asset turnover ratio of 4,a current ratio of 2,and a return on sales ratio of 6%.Its ROE is _________.

The process of decomposing ROE into a series of component ratios is called ______________.

Investments: Background and Issues

Asset Classes and Financial Instruments

Securities Markets

Mutual Funds and Other Investment Companies

Risk and Return: Past and Prologue

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Bond Prices and Yields

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation

Options Markets

Option Valuation

Futures Markets and Risk Management

Portfolio Performance Evaluation

Globalization and International Investing

Hedge Funds

Taxes,inflation,and Investment Strategy

Investors and the Investment Process

Filters

Operating ROA is calculated as __ while ROE is calculated as _.