Exam 14: Financial Statement Analysis

The tax burden of the firm is 0.5,the interest burden is 0.55,the profit margin is 0.25,the asset turnover is 1.5,and the leverage ratio is 1.65.What is the ROE of the firm?

(Multiple Choice)

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Question 41

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

(Multiple Choice)

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Question 42

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 ATO for 2007 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)

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Question 43

The level of real income of a firm can be distorted by the reporting of depreciation and interest expense.During periods of low inflation,the level of reported depreciation tends to income,and the level of interest expense reported tends to income.

(Multiple Choice)

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Question 44

Another term for EVA is ______.

(Multiple Choice)

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Question 45

Economic Value Added (EVA)is:

(Multiple Choice)

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Question 46

Look at the following table of data for Key Biscuit Company: What must have caused the firm's ROE to drop?

(Multiple Choice)

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Question 47

A firm purchases goods on credit worth $100.The same firm pays off $80 in old credit purchases.An investment is made via the purchase of a new facility and equity is issued in the amount of $200 to pay for the purchase.What is the change in net cash provided by financing?

(Multiple Choice)

4.9/5

(41)

Question 48

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 P/E ratio for 2008 is _________.

(Multiple Choice)

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Question 49

Quick ratio is a measure of firm's __________.

(Multiple Choice)

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Question 50

If the interest rate on debt is higher than the ROA,then a firm's ROE will _________.

(Multiple Choice)

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(36)

Question 51

By 2008,over 100 countries have adopted financial reporting standards which are in conformance with ________.

(Multiple Choice)

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Question 52

A firm has an ROA of 8%,a debt/equity ratio of 0.5,its ROE is _________.

(Multiple Choice)

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Question 53

The term quality of earnings refers to ________.

(Multiple Choice)

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Question 54

A firm has a tax burden of 0.7,a leverage ratio of 1.3,an interest burden of 0.8,and a return on sales ratio of 10%.The firm generates $2.28 in sales per dollar of assets.What is the firm's ROE?

(Multiple Choice)

4.9/5

(46)

Question 55

In 2006 Hewlett Packard repurchased shares of common stock worth $5,241 million and made dividend payments of $894 million.Other financing activities raised $196 million and Hewlett-Packard's total cash flow from financing was -$6,077 million.How much did the long term debt accounts of Hewlett Packard change?

(Multiple Choice)

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(33)

Question 56

The firms leverage ratio is 1.2,interest burden ratio is .81,profit margin is .25,and its asset turnover is 1.10.What is the firm's compound leverage factor?

(Multiple Choice)

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(40)

Question 57

What ratio will definitely increase when a firm increases its annual sales with no corresponding increase in assets?

(Multiple Choice)

4.7/5

(32)

Question 58

The major difference between IFRS and GAAP is that U.S.standards are ___ and IFRS standards are _.

(Multiple Choice)

4.9/5

(38)

Question 59

A firm has a ROE of 20% and a market-to-book ratio of 2.38.Its P/E ratio is _________.

(Multiple Choice)

4.9/5

(46)

Question 60

Showing 41 - 60 of 84

The tax burden of the firm is 0.5,the interest burden is 0.55,the profit margin is 0.25,the asset turnover is 1.5,and the leverage ratio is 1.65.What is the ROE of the firm?

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

The level of real income of a firm can be distorted by the reporting of depreciation and interest expense.During periods of low inflation,the level of reported depreciation tends to income,and the level of interest expense reported tends to income.

Another term for EVA is ______.

Economic Value Added (EVA)is:

Look at the following table of data for Key Biscuit Company: What must have caused the firm's ROE to drop?

A firm purchases goods on credit worth $100.The same firm pays off $80 in old credit purchases.An investment is made via the purchase of a new facility and equity is issued in the amount of $200 to pay for the purchase.What is the change in net cash provided by financing?

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 P/E ratio for 2008 is _________.

Quick ratio is a measure of firm's __________.

If the interest rate on debt is higher than the ROA,then a firm's ROE will _________.

By 2008,over 100 countries have adopted financial reporting standards which are in conformance with ________.

A firm has an ROA of 8%,a debt/equity ratio of 0.5,its ROE is _________.

The term quality of earnings refers to ________.

A firm has a tax burden of 0.7,a leverage ratio of 1.3,an interest burden of 0.8,and a return on sales ratio of 10%.The firm generates $2.28 in sales per dollar of assets.What is the firm's ROE?

The firms leverage ratio is 1.2,interest burden ratio is .81,profit margin is .25,and its asset turnover is 1.10.What is the firm's compound leverage factor?

What ratio will definitely increase when a firm increases its annual sales with no corresponding increase in assets?

The major difference between IFRS and GAAP is that U.S.standards are ___ and IFRS standards are _.

A firm has a ROE of 20% and a market-to-book ratio of 2.38.Its P/E ratio is _________.

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

Exam 14: Financial Statement Analysis

The tax burden of the firm is 0.5,the interest burden is 0.55,the profit margin is 0.25,the asset turnover is 1.5,and the leverage ratio is 1.65.What is the ROE of the firm?

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

The level of real income of a firm can be distorted by the reporting of depreciation and interest expense.During periods of low inflation,the level of reported depreciation tends to __________ income,and the level of interest expense reported tends to __________ income.

Another term for EVA is ______.

Economic Value Added (EVA)is:

Look at the following table of data for Key Biscuit Company: What must have caused the firm's ROE to drop?

A firm purchases goods on credit worth $100.The same firm pays off $80 in old credit purchases.An investment is made via the purchase of a new facility and equity is issued in the amount of $200 to pay for the purchase.What is the change in net cash provided by financing?

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 P/E ratio for 2008 is _________.

Quick ratio is a measure of firm's __________.

If the interest rate on debt is higher than the ROA,then a firm's ROE will _________.

By 2008,over 100 countries have adopted financial reporting standards which are in conformance with ________.

A firm has an ROA of 8%,a debt/equity ratio of 0.5,its ROE is _________.

The term quality of earnings refers to ________.

A firm has a tax burden of 0.7,a leverage ratio of 1.3,an interest burden of 0.8,and a return on sales ratio of 10%.The firm generates $2.28 in sales per dollar of assets.What is the firm's ROE?

The firms leverage ratio is 1.2,interest burden ratio is .81,profit margin is .25,and its asset turnover is 1.10.What is the firm's compound leverage factor?

What ratio will definitely increase when a firm increases its annual sales with no corresponding increase in assets?

The major difference between IFRS and GAAP is that U.S.standards are ___________ and IFRS standards are _________.

A firm has a ROE of 20% and a market-to-book ratio of 2.38.Its P/E ratio is _________.

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

The level of real income of a firm can be distorted by the reporting of depreciation and interest expense.During periods of low inflation,the level of reported depreciation tends to income,and the level of interest expense reported tends to income.

The major difference between IFRS and GAAP is that U.S.standards are ___ and IFRS standards are _.