Question 1: The Jamestown Group has equity of $421,000, sales of $792,000, and a profit margin of 6 percent. What is the return on equity?

• 8.87 percent
• 6.19 percent
• 11.29 percent
• 10.27 percent
• 9.37 percent

Question 2: If the Debt/Equity Ratio is 0.60. What is the Debt Ratio?

• 0.40
• 0.375
• 0.60
• 1
• o.4444

Question 3: XYZ earned a net profit margin of 7.6% last year and had an equity multiplier of 3.4. If its total assets are $94 million and its sales are 179 million, what is the firm's debt ratio?

Question 4: ABC earned a net profit margin of 7.8% last year and had an equity multiplier of 3.9. If its total assets are $116 million and its sales are 180 million, what is the firm's return on equity?

Question 5:  ABC's Balance Sheet lists Current Assets of $300, Current Liabilities of $200, Fixed Assets of $700, Long-Term Debt of $400. ABC has 200 shares outstanding. What is the market-to-book ratio (MTB) if the market price per share is $8?

Question 6: If the debt ratio is 0.20, the Equity Multiplier is:

• 1.25
• 0.25
• 1.20
• 0.20
• 0.80
• 1.5

Question 7:  Blackstone, Inc., has net income of $8,910, a tax rate of 39%, and interest expense of $739. What is the times interest earned ratio?

Question 8: XYZ has total sales of $209, assets of $93, return on equity of 30%, and net profit margin of 5%. What is the amount of equity?

Question 9:  Smith Corporation has current assets of $11,400, inventories of $4,000, and a current ratio of 2.6. What is Smith s acid test ratio? Assume pre-paid expenses is zero.

• 1.69
• 0.54
• 0.74
• 1.35

Question 10:  Toast and Butter, Inc., has total assets of $712,000 and an equity multiplier of 1.6. What is the debt-equity ratio?

• 0.60
• 0.67
• 0.63
• 1.60
• 1.67

Question 11: ABC, Inc., has a market-to-book ratio of 2, net income of $85,033, a book value per share of $16.4, and 48,513 shares of stock outstanding. What is the price-earnings ratio?

Question 12: If Roten, Inc., has a equity multiplier of 1.75, total asset turnover of 1.30, and profit margin of 8.5 percent, what is the return on equity (ROE)?

• 19.34%
• 2.275%
• 1.75%
• 14.875%

Question 13: Wexford Hotels has sales of $289,600, depreciation of $21,400, interest of $1,300, Operating Income of $23,269.70, and a tax rate of 34 percent. What is the times interest earned ratio?

• 20
• 17.9
• 18.5
• 16
• 19.8

Question 14: ABC's balance sheet indicates a book value of shareholders' equity of $841,083. The firm's earning per share are $2.4 and the price-earnings ratio is 11.52. If there are 43,907 shares outstanding, what is the market value per share?

Hint: Market value per share is same as market price per share.

Question 15: A firm has sales of $350,000, a profit margin of 6 percent, a total asset turnover rate of 1.25, and an equity multiplier of 1.4. What is the return on equity?

• 10.50 percent
• 7.50 percent
• 7.75 percent
• 11.11 percent
• 5.36 percent

Question 16: A firm has net working capital of $1,100 and current liabilities of $2,800. What is the current ratio?

• .98
• 2.56
• .39
• .72
• 1.39

Question 17: A firm has total assets of $682,000 and total equity of $424,000. What is the debt-equity ratio?

• 1.61
• 0.61
• 1.64
• 0.62

Question 18: If the debt ratio is 0.80, the Equity Multiplier is:

• 0.8
• 0.2
• 1
• 5
• 1.8
• 4

Question 19: ABC's balance sheet indicates a book value of shareholders' equity of $836,775. The firm's earning per share are $3.6 and the price-earnings ratio is 11.05. If there are 59,171 shares outstanding, what is the market-to-book ratio?

Hint: Market value per share is same as market price per share

Question 20: A firm has total equity of $70,312.50, a profit margin of 8 percent, an equity multiplier of 1.6, and a total asset turnover of 1.3. What is the amount of the firm s sales?

• $91,406
• $112,500
• $121,500
• $137,500
• $146,250

Question 21: The Baker s Dozen has current liabilities of $5,600, net working capital of $2,100, inventory of $3,900, and sales of $13,500. What is the quick ratio? Assume pre-paid expenses are zero.

• 0.68
• 0.70
• 1.38
• 1.47
• 2.08

Question 22: If the debt ratio is 0.60, the Debt/Equity Ratio is:

• 1.25
• 0.25
• 1.20
• 0.20
• 0.80
• 1.5

Question 23: Top Sound, Inc., has total assets of $212,000, a debt-equity ratio of .6, and net income of $9,500. What is the return on equity?

• 6.87 percent
• 7.17 percent
• 7.34 percent
• 7.50 percent
• 7.67 percent

Question 24: ABC's balance sheet indicates a book value of shareholders' equity of $710,884. The firm's earning per share are $2.9 and the price-earnings ratio is 11.02. If there are 43,006 shares outstanding, what is the book value per share?

Hint: Market value per share is same as market price per share

Question 25: If the Debt/Equity Ratio is 0.50. What is the Debt Ratio?

• 0.50
• 0.375
• 0.60
• 1
• o.3333

Question 26: ABC has total sales of $181, assets of $93, return on equity of 36%, and net profit margin of 9%. What is the debt ratio?

Question 27: If the debt ratio is 0.75, the Debt/Equity Ratio is:

• 0.75
• 0.25
• 1
• 5
• 1.75
• 3

Question 28: The ability of the firm to pay off short-term obligations as they come due is indicated by:

• My Grade Point Average
• Turnover Ratios
• Liquidity Ratios
• Profitability Ratios

Question 29: ABC Corporation has the following ratios: Total Asset Turnover= 1.6 Total debt to total assets= 0.5 Current Ratio= 1.7 Current Liabilities= $2,000,000 Sales = $16,000,000 What is the amount of current assets?

• 2,000,000
• 3,200,000
• 3,400,000
• 1,000,000

Question 30: XYZ earned a net profit margin of 4.5% last year and had an equity multiplier of 3.7. If its total assets are $116 million and its sales are 152 million, what is the firm's return on assets?

Question 31: If the Debt/Equity Ratio is 0.80. What is the Debt Ratio?

• 0.40
• 0.375
• 0.60
• 1
• o.4444