trắc nghiệm môn TCDN bằng tiếng anh, Quizzes of Finance

Download trắc nghiệm môn TCDN bằng tiếng anh and more Quizzes Finance in PDF only on Docsity! Chương 1 1.A stakeholder is any person or entity: a.owning shares of stock of a corporation. b.that initially started a firm and currently has management control over that firm. c.to whom the firm currently owes money. d.other than a stockholder or creditor who potentially has a financial interest in a firm. Đúng e.owning bonds or other long-term debt issued by a corporation. Phản hồi The correct answer is: other than a stockholder or creditor who potentially has a financial interest in a firm. Câu Hỏi 2 Financial managers primarily create firm value by: a. investing in assets that generate cash in excess of their cost. Đúng b. maximizing current sales. c. maximizing current dividends. d. lowering the earnings per share. e. increasing the firm's market share. Phản hồi The correct answer is: investing in assets that generate cash in excess of their cost. Câu Hỏi 3ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of the following statements correctly depicts the common chain of command in a corporation? a. The information systems manager reports to the treasurer. b. The tax manager reports to the treasurer. c. The controller reports to the chief executive officer. d. The credit manager reports to the treasurer. Đúng e. The capital expenditures manager reports to the controller. Phản hồi The correct answer is: The credit manager reports to the treasurer. Câu Hỏi 4ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Insider trading is: a. prohibited by the Securities Act of 1933. b. impossible in today's efficient markets. c. highly discouraged, but still legal. d. prohibited by the Sarbanes-Oxley Act of 2002. e. prohibited by the Securities Exchange Act of 1934. Đúng Phản hồi The correct answer is: prohibited by the Securities Exchange Act of 1934. Câu Hỏi 5ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . The corporate treasurer oversees which one of these areas? a. Information systems b. Cost accounting c. Financial planning Đúng d. Financial accounting e. Tax reporting Phản hồi The correct answer is: Financial planning Câu Hỏi 6ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of these is a correct definition? a. Current liabilities are debts that must be repaid in 18 months or less. b. Net working capital equals current assets plus current liabilities. c. Current assets are assets with short lives, such as accounts receivable. Đúng d. Long-term debt is defined as a residual claim on a firm's assets. e. Tangible assets are fixed assets such as patents. Phản hồi The correct answer is: Current assets are assets with short lives, such as accounts receivable. Câu Hỏi 7ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Stock options granted to a corporation's managers are primarily designed to: a. reduce agency costs. Đúng b. increase current profits. c. replace promotions. d. replace salary increases. e. reward long-term employment. Phản hồi The correct answer is: reduce agency costs. Câu Hỏi 8ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ e. unlimited; no Phản hồi The correct answer is: unlimited; total Câu Hỏi 15ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of the following parties is considered a stakeholder of a firm? a. Customer Đúng b. Long-term creditor c. Common stockholder d. Short-term creditor e. Preferred stockholder Phản hồi The correct answer is: Customer Câu Hỏi 16ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . A business formed by two or more individuals who each have unlimited personal liability for all of the firm's debts is called a: a. sole proprietorship. b. general partnership. Đúng c. limited liability company. d. corporation. e. limited partnership. Phản hồi The correct answer is: general partnership. Câu Hỏi 17ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Partnership profits: a. are fully distributed as taxable income to the partners. Đúng b. are distributed to general partners with interest paid to limited partners. c. are distributed to the partners on an aftertax basis. d. are generally held by the partnership and later distributed as dividend payments. e. are generally reinvested in the firm rather than being distributed. Phản hồi The correct answer is: are fully distributed as taxable income to the partners. Câu Hỏi 18ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . One disadvantage of the corporate form of business ownership is the: a. limited liability protection provided for all owners. b. unlimited life of the firm. c. difficulties encountered when changing ownership. d. double taxation of profits. Đúng e. firm's ability to raise cash. Phản hồi The correct answer is: double taxation of profits. Câu Hỏi 19ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of these represents the best means of increasing current shareholder value? a. Minimizing the overall size of the firm b. Increasing the current value of the overall firm Đúng c. Forsaking all new projects d. Maximizing the capital rate of the firm e. Decreasing the number of employees Phản hồi The correct answer is: Increasing the current value of the overall firm Câu Hỏi 20ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of the following is a capital budgeting decision? a. Deciding whether or not a new production facility should be built Đúng b. Deciding how much credit to grant to a particular customer c. Determining how much inventory to keep on hand d. Deciding when to repay a long-term debt e. Determining how much debt should be borrowed from a particular lender Phản hồi The correct answer is: Deciding whether or not a new production facility should be built Câu Hỏi 21ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of these accounts is included in net working capital? a. Copyright b. Inventory Đúng c. Manufacturing equipment d. Common stock e. Long-term debt Phản hồi The correct answer is: Inventory Câu Hỏi 22ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . The primary goal of financial management is to: a. minimize operational costs and maximize firm efficiency. b. maintain steady growth in both sales and net earnings. c. maximize the current value per share of the existing stock. Đúng d. maximize current dividends per share of the existing stock. e. avoid financial distress. Phản hồi The correct answer is: maximize the current value per share of the existing stock. Câu Hỏi 23ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . A firm creates value by: a. purchasing assets that create cash inflows equal to the cost of those assets. b. borrowing long-term debt. c. having a greater cash inflow from its stockholders than its outflow to them. d. generating sales whether or not payment is received for all of those sales. e. paying more cash to its creditors and stockholders than the amount it received from them. Đúng Phản hồi The correct answer is: paying more cash to its creditors and stockholders than the amount it received from them. Câu Hỏi 24ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . In a limited partnership, each limited partner's liability for the partnership's debts is: a. limited to the total amount invested by all partners. b. limited to his or her total earnings received from the partnership. c. limited to the amount he or she invested into the partnership. Đúng d. Đúng b. corporation. c. general partnership. d. limited liability company. e. limited partnership. Phản hồi The correct answer is: sole proprietorship. Câu Hỏi 32ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . A proxy fight occurs when: a. the firm is declared insolvent. b. a group solicits voting rights to replace the board of directors. Đúng c. the board of directors disagree on the members of the management team. d. a competitor offers to sell their ownership interest in the firm. e. the firm files for bankruptcy. Phản hồi The correct answer is: a group solicits voting rights to replace the board of directors. Câu Hỏi 33ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Corporate bylaws: a. establish the name of the corporation. b. set forth the number of members of the initial board of directors. c. establish the rules by which the corporation regulates its existence. Đúng d. establish the rights granted to its shareholders. e. set forth the purpose of the firm. Phản hồi The correct answer is: establish the rules by which the corporation regulates its existence. Câu Hỏi 34ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . The understanding of the work and cash to be contributed to a partnership by each member of that partnership is formalized in the: a. statement of purpose. b. indenture contract. c. partnership agreement. Đúng d. indemnity clause. e. group charter. Phản hồi The correct answer is: partnership agreement. Câu Hỏi 35ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of the following business types is best suited to raising large amounts of capital? a. Corporation Đúng b. Limited liability company c. Sole proprietorship d. Limited partnership e. General partnership Phản hồi The correct answer is: Corporation Câu Hỏi 36ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . The corporate controller is generally responsible for which one of these functions? a. Tax reporting Đúng b. Cash management c. Capital expenditures d. Financial planning e. Credit management Phản hồi The correct answer is: Tax reporting Câu Hỏi 37ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . One intent of the Sarbanes Oxley Act of 2002 is to: a. guarantee the repayment of all future personal loans to corporate officers and directors. b. protect corporate directors from frivolous lawsuits. c. require all public corporations to "go dark" within the next twenty years. d. prevent minority investors from making demands on corporations. e. protect investors from corporate abuses. Đúng Phản hồi The correct answer is: protect investors from corporate abuses. Câu Hỏi 38ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of the following statements concerning a sole proprietorship is correct? a. The owner may be forced to sell his/her personal assets to pay company debts. Đúng b. The business profits are taxed separately from the personal income of the owner. c. A sole proprietorship is difficult to form. d. The business profits are taxed twice at the federal level. e. A sole proprietorship has an unlimited life. Phản hồi The correct answer is: The owner may be forced to sell his/her personal assets to pay company debts. Câu Hỏi 39ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Members of the board of directors are selected by: a. shareholder voting. Đúng b. company management. c. the firm's Chief Executive Officer. d. the largest five shareholders. e. the firm's managers and employees. Phản hồi The correct answer is: shareholder voting. Câu Hỏi 40ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of these statements is correct? a. Accountants record sales and expenses after the related cash flows occur. b. Most investors prefer greater risk over less risk. c. The value of an investment depends on the size, timing, and risk of the investment's cash flows. Đúng d. When selecting one of two projects, managers should select the project with the higher total expected cash flow. e. Individuals tend to prefer later cash flows over current cash flows. Phản hồi The correct answer is: The value of an investment depends on the size, timing, and risk of the investment's cash flows. Câu Hỏi 41ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . A business created as a distinct legal entity is called a: a. corporation. Câu Hỏi 48ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . A conflict of interest between the stockholders and managers of a firm is referred to as the: a. corporate breakdown. b. legal liability. c. corporate activism. d. stockholders' liability. e. agency problem. Đúng Phản hồi The correct answer is: agency problem. Câu Hỏi 49ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of these is a cash outflow from a corporation? a. Sale of an asset b. Tax payment Đúng c. Profit retained by the firm d. Issuance of debt e. Sale of common stock Phản hồi The correct answer is: Tax payment Câu Hỏi 50ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . The process of planning and managing a firm's long-term assets is called: a. cash management. b. capital budgeting. Đúng c. capital structure management. d. working capital management. e. cost accounting management. Phản hồi The correct answer is: capital budgeting. Câu Hỏi 51ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Short-term finance deals with: a. acquiring and selling fixed assets. b. issuing additional shares of common stock. c. capital budgeting. d. financing long-term projects. e. the timing of cash flows. Đúng Phản hồi The correct answer is: the timing of cash flows. Câu Hỏi 52ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which type of business organization has the respective rights and privileges of a legal person? a. Limited liability company b. Limited partnership c. Corporation Đúng d. General partnership e. Sole proprietorship Phản hồi The correct answer is: Corporation Câu Hỏi 53ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Any debt that must be repaid within the next year is recorded on the balance sheet as: a. long-term debt. b. a current asset. c. an intangible asset. d. a current liability. Đúng e. accounts receivable. Phản hồi The correct answer is: a current liability. Câu Hỏi 54ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . The ultimate control of a corporation lies in the hands of the corporate: a. president. b. chairman of the board. c. board of directors. d. stockholders. Đúng e. chief executive officer. Phản hồi The correct answer is: stockholders. Câu Hỏi 55ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . A business entity that provides each owner with limited liability while the firm is operated and taxed like a partnership is called a: a. limited partnership. b. limited liability company. Đúng c. general partnership. d. limited proprietorship. e. corporation. Phản hồi The correct answer is: limited liability company. Câu Hỏi 56ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of these best fits the description of an agency cost? a. The payment required for an outside audit of the firm Đúng b. The payment of interest on a firm's debts c. The benefits received from reducing production costs per unit d. The costs of increasing the dividend payment per share e. The payment of corporate income taxes Phản hồi The correct answer is: The payment required for an outside audit of the firm Câu Hỏi 57ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . A firm's capital structure refers to the firm's: a. combination of accounts appearing on the left side of its balance sheet. b. investment selections for its excess cash reserves. c. combination of cash and cash equivalents. d. proportions of financing from current and long-term debt and equity. Đúng e. mixture of various types of production equipment. Phản hồi The correct answer is: proportions of financing from current and long-term debt and equity. board of directors. e. chief financial officer. Đúng Phản hồi The correct answer is: chief financial officer. Câu Hỏi 65ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ . Which one of the following actions by a financial manager creates an agency problem? a. Refusing to spend current cash on an unprofitable project b. Borrowing money when doing so creates value for the firm c. Agreeing to expand the company at the expense of stockholders' value Đúng d. Lowering selling prices that will result in increased firm value e. Agreeing to pay management bonuses based on the market value of the firm's stock Phản hồi The correct answer is: Agreeing to expand the company at the expense of stockholders' value Câu Hỏi 66ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? a. Salary raises based on length of service Đúng b. Threat of a proxy fight c. Threat of a takeover of the firm by unsatisfied stockholders d. Management compensation tied to the market value of the firm's stock e. Implementation of a stock option plan Phản hồi The correct answer is: Salary raises based on length of service Chương 2:  Câu Hỏi 1ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Quick Marts increased its cash by $418 this year. The firm's statement of cash flows shows total cash flow from financing activities of $246 and total cash flow from investing activities of −$184. What is the total cash flow from operations on this accounting statement? a. $427 b. $391 c. $356 $418 = Total cash flow from operations − 184 + 246 Total cash flow from operations = $356 d. $367 e. $480 Phản hồi The correct answer is: $356 Câu Hỏi 2ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi JJ's has net sales of $48,920, depreciation of $711, cost of goods sold of $31,890, administrative costs of $11,210, interest expense of $680, dividends paid of $450, and taxes of $974. What is the cash flow from operations as it will appear on the accounting statement of cash flows if the firm spent $274 on net working capital? a. $4,066 b. $3,892 Cash flow from operations = $48,920 − 31,890 − 11,210 − 680 − 974 − 274 Cash flow from operations = $3,892   Note that the accounting statement of cash flows includes the interest expense as an operating activity. c. $3,056 d. $3,391 e. $3,667 Phản hồi The correct answer is: $3,892 Câu Hỏi 3ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi In the accounting statement of cash flows, which one of these is calculated by adding back noncash expenses to net income and adjusting for changes in current assets and liabilities? a. Net working capital b. Cash flow to investors c. Cash flow from investing activities d. Cash flow from financing activities e. Cash flow from operations Đúng Phản hồi The correct answer is: Cash flow from operations Câu Hỏi 4ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Southwest Co. has equipment with a book value of $3,560 that could be sold today for $3,900. Its inventory is valued at $1,780 and could be sold immediately to a competitor at a discount of 25 percent. The firm has $260 in cash and customers owe the firm $950, of which 98 percent is collectible. What is the current market value of the firm's assets? a. $5,536 b. $6,426 Market value of assets = $260 + .98($950) + (1 − .25)($1,780) + $3,900 Market value of assets = $6,426 c. $6,316 d. $6,086 e. $5,946 Phản hồi The correct answer is: $6,426 Câu Hỏi 5ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Delfinio's has total revenues of $4,315, selling and administrative expenses of $611, depreciation of $309, cost of goods sold of $2,403, taxes of $178, dividends of $80, and interest expense of $168. What is the amount of the non-cash items? a. $248 b. $567 c. $477 d. $309 Non-cash items = Depreciation = $309 e. $481 Phản hồi The correct answer is: $309 Câu Hỏi 6ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi As seen on the income statement of a tax-paying firm: a. depreciation is shown as an expense but does not affect the tax expense. b. interest expense is added to earnings before interest and taxes to compute pretax income. c. depreciation reduces both the pretax income and the net income. Đúng d. the tax rate is applied to the earnings before interest and taxes when the firm pays interest. e. interest is deducted from income and increases the total taxes incurred. Phản hồi The correct answer is: depreciation reduces both the pretax income and the net income. Câu Hỏi 7ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Liquidity is: a. equal to the market value of a firm's total assets minus its total liabilities. b. a measure of the use of debt in a firm's capital structure. c. $14,736 d. $13,117 e. $11,634 Phản hồi The correct answer is: $10,819 Câu Hỏi 14ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Depreciation for a profitable firm: a. reduces both the net fixed assets and the costs of a firm. b. decreases net fixed assets, net income, and operating cash flows. c. decreases both operating and net income. Đúng d. is a non-cash expense which increases the net operating income. e. increases the net fixed assets as shown on the balance sheet. Phản hồi The correct answer is: decreases both operating and net income. Câu Hỏi 15ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi JK Meadows has beginning current liabilities of $14,602 and total liabilities of $35,418. At the end of the year, the current liabilities are $15,311 and the total liabilities are $37,604. During the year, the firm paid $680 in dividends and $1,320 in interest. What is the cash flow to creditors? a. $3,230 b. $2,797 c. −$267 d. $3,135 e. −$157 CFC = $1,320 − [($37,604 − 15,311) − ($35,418 − 14,602)] CFC = −$157 Phản hồi The correct answer is: −$157 Câu Hỏi 16ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi At the beginning of the year, long-term debt of a firm is $2,400 and total debt is $3,150. At the end of the year, long-term debt is $2,800 and total debt is $4,370. The interest paid is $40. What is the amount of the cash flow to creditors? a. $440 b. $1,180 c. −$40 d. $1,260 e. −$360 CF(B) = $40 − ($2,800 − 2,400) CF(B) = −$360 Phản hồi The correct answer is: −$360 Câu Hỏi 17ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The entire book value of the residual ownership of a corporation is known as the: a. retained earnings. b. total equity. Đúng c. intangible assets. d. total assets. e. capital surplus. Phản hồi The correct answer is: total equity. Câu Hỏi 18ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The accounting statement of cash flows consists of the cash flows from: a. balance sheet accounts only. b. income statement accounts only. c. operations, investing activities, and divesting activities. d. operations, investing activities, and financing activities. Đúng e. internal activities, external activities, and financing activities. Phản hồi The correct answer is: operations, investing activities, and financing activities. Câu Hỏi 19ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Last year, Webster Farms had annual revenue of $87,200, depreciation of $11,600, cost of goods sold of $54,700, and administrative expenses of $8,300. The firm paid $3,200 in dividends and paid taxes of $2,646. What was the operating cash flow? a. $23,100 b. $21,554 OCF = $87,200 − 54,700 − 8,300 − 2,646 OCF = $21,554 c. $23,700 d. $21,500 e. $18,300 Phản hồi The correct answer is: $21,554 Câu Hỏi 20ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi During the year, Lasko's repaid $12,500 in long-term debt, borrowed $8,400, paid $611 in interest and $740 in dividends, and had an operating cash flow of $16,207. The firm acquired $33,500 in new fixed assets and sold $8,400 of old assets. Net working capital declined by $1,592 during the year. What is the annual cash flow to stockholders? a. $2,800 b. −$12,012 Cash flow of the firm = $16,207 − 33,500 + 8,400 − (−$1,592) Cash flow of the firm = −$7,301   CFC = $611 + 12,500 − 8,400 CFC = $4,711   CFS = −$7,301 − 4,711 CFS = −$12,012 c. −$2,590 d. $1,200 e. −$8,828 Phản hồi The correct answer is: −$12,012 Câu Hỏi 21ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi When you are making a financial decision, the most relevant tax rate is the ____ rate when the tax rate schedule is progressive. a. fixed b. marginal Đúng c. total d. average e. variable Phản hồi The correct answer is: marginal Câu Hỏi 22ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Assuming the number of shares outstanding and total earnings remains constant, an increase in dividends per share will: c. requires repayment at some point in the future. d. increases the number of shares outstanding. e. increases the total equity of the firm. Phản hồi The correct answer is: results from a repurchase of outstanding shares of stock. Câu Hỏi 29ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi A debt-free firm has total sales of $22,980, costs of $14,715, and depreciation of $6,045. What is the operating cash flow at a tax rate of 23 percent? a. $7,754.40 EBIT = $22,980 − 14,715 − 6,045 EBIT = $2,220   Tax = $2,220(.23) Tax = $510.60   OCF = $2,220 + 6,045 − 510.60 OCF = $7,754.40 b. $9,019.80 c. $2,410.80 d. $8,340.00 e. $1,465.20 Phản hồi The correct answer is: $7,754.40 Câu Hỏi 30ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of these will cause an increase in the cash flow to creditors for the current year? a. Purchasing inventory using credit offered by a supplier b. Payoff of a 36-month loan after the first 15 months Đúng c. Collection of a refund for the overpayment of a loan d. Acquiring a new loan that will be repaid in one lump sum 24 months from now e. Payment of a late charge on an account payable to a supplier Phản hồi The correct answer is: Payoff of a 36-month loan after the first 15 months Câu Hỏi 31ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Right Way Movers has interest expense of $168, total revenues of $38,411, costs of $28,515, depreciation of $306, and taxes of $1,979. The beginning balance sheet has total assets of $48,354, net fixed assets of $31,202, current liabilities of $14,207, and total liabilities of $29,407. The ending balance sheet shows total assets of $49,305, net fixed assets of $33,406, current liabilities of $17,318, and total liabilities of $30,404. What is the annual cash flow of the firm? a. −$2,160 b. $8,474 c. $9,771 OCF = $38,411 − 28,515 − 1,979 OCF = $7,917   Net capital spending = $33,406 − 31,202 + 306 Net capital spending = $2,510   ΔNWC = ($49,305 − 33,406 − 17,318) − ($48,354 − 31,202 − 14,207) ΔNWC = −$4,364   CF(A) = $7,917 − 2,510 − (−$4,364) CF(A) = $9,771 d. $15,168 e. $2,857 Phản hồi The correct answer is: $9,771 Câu Hỏi 32ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of these accounts is classified as a fixed asset on the balance sheet? a. Accounts payable b. Intangible assets Đúng c. Preferred stock d. Inventory e. Accounts receivable Phản hồi The correct answer is: Intangible assets Câu Hỏi 33ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi All else held constant, the earnings per share will decrease as the: a. net income increases. b. number of shares outstanding increases. Đúng c. tax rate decreases. d. total revenue of the firm increases. e. costs decrease. Phản hồi The correct answer is: number of shares outstanding increases. Câu Hỏi 34ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of the following is a current liability? a. Loan payment due in 13 months b. Amount due from a customer in 30 days c. Amount due to a supplier in 18 months d. Estimated taxes just paid e. Note payable in nine months Đúng Phản hồi The correct answer is: Note payable in nine months Câu Hỏi 35ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Lester's Markets has total revenues of $3,811, costs of $2,902, depreciation of $315, interest expense of $168, and taxes of $89. At the beginning of the year, the firm had current assets of $2,150, total assets of $4,908, and total liabilities of $1,964. At the end of the year, the current assets are $2,202, total assets are $5,103, and total liabilities are $1,952. What is the amount of net capital spending for the year? a. $133 b. −$182 c. $510 d. $285 e. $458 Net capital spending = ($5,103 − 2,202) − ($4,908 − 2,150) + $315 Net capital spending = $458 Phản hồi The correct answer is: $458 Câu Hỏi 36ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Given the personal income tax rates as shown, what is the average tax rate for an individual with taxable income of $118,700? Taxable Income Tax Rate Đoạn văn câu hỏi Ledger Properties has the following financial information:   Current Year Prior Year Revenues   $ 48,915     $ 43,61 0   Administrative expenses     12,106       11,60 2   Interest expense     816       468   Cost of goods sold     29,715       26,30 9   Depreciation     1,408       1,387   Net fixed assets     32,711       31,98 4   Current liabilities     14,652       14,62 5   Common stock     15,000       14,00 0   Current assets     16,506       14,68 7   Long-term debt     12,200       ?   Retained earnings     7,365       4,246   Dividends paid     290       275       What is the cash flow of the firm for the current year if the tax rate is 22 percent? a. $2,517 b. $1,885 c. $1,042 d. $2,297 e. $2,096 Pretax income = $48,915 − 29,715 − 12,106 − 1,408 − 816 Pretax income = $4,870   Tax = .22($4,870) Tax = $1,071   OCF = $48,915 − 29,715 − 12,106 − 1,071 OCF = $6,023   Net capital spending = $32,711 − 31,984 + 1,408 Net capital spending = $2,135   Change in NWC = ($16,506 − 14,652) − ($14,687 − 14,625) Change in NWC = $1,792   Cash flow of the firm = $6,023 − 2,135 − 1,792 Cash flow of the firm = $2,096 Phản hồi The correct answer is: $2,096 Câu Hỏi 41ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Northern Express paid $85 in dividends and $110 in interest expense during a given year. During that same year, the firm issued $40 in new equity shares, issued new debt of $65, and repaid $23 of old debt. What is the cash flow to creditors for that year? a. $146 b. $237 c. $46 d. $152 e. $68 CF(B) = $110 − ($65 − 23) CF(B) = $68 Phản hồi The correct answer is: $68 Câu Hỏi 42ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Last year, Oscar's Dog Treats had a cash flow to creditors of $2,840 and a cash flow to stockholders of $1,630. The firm spent a net of $1,420 on fixed assets and reduced net working capital by $330. What was the operating cash flow? a. $4,901 b. $5,560 CF(A) = $2,840 + 1,630 CF(A)= $4,470   $4,470 = OCF − $1,420 − (−$330) OCF = $5,560 c. a. Dividends b. Interest expense c. Selling expenses d. Current taxes e. Deferred taxes Đúng Phản hồi The correct answer is: Deferred taxes Câu Hỏi 49ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The income statement: a. ignores any income other than operating revenues. b. treats dividends paid as a cash expense. c. includes noncash expenses. Đúng d. measures performance for one specific day. e. excludes deferred tax expense. Phản hồi The correct answer is: includes noncash expenses. Câu Hỏi 50ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Martha's Enterprises spent $4,100 to purchase equipment three years ago. This equipment is currently valued at $2,700 on today's balance sheet but could actually be sold for $3,200. Net working capital is $400 and long-term debt is $2,300. Assuming the equipment is the firm's only fixed asset, what is the book value of shareholders' equity? a. $1,300 b. $2,200 c. $800 Book value of equity = $400 + 2,700 − 2,300 Book value of equity = $800 d. $1,600 e. $1,900 Phản hồi The correct answer is: $800 Câu Hỏi 51ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi A firm's dividend payments less any net new equity raised is referred to as the firm's: a. operating cash flow. b. cash flow to stockholders. Đúng c. net working capital. d. capital spending. e. cash flow from creditors. Phản hồi The correct answer is: cash flow to stockholders. Câu Hỏi 52ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi A firm has $820 in inventory, $3,200 in fixed assets, $670 in accounts receivable, $390 in accounts payable, $500 in long-term debt, and $360 in cash. What is the amount of the net working capital? a. $890 b. $3,600 c. $1,460 NWC = $360 + 670 + 820 − 390 NWC = $1,460 d. $3,340 e. $960 Phản hồi The correct answer is: $1,460 Câu Hỏi 53ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi For a firm with long-term debt, net income must be equal to: a. Taxes + Addition to retained earnings. b. EBIT − Taxes. c. Dividends + Addition to retained earnings. Đúng d. Operating income × (1 − Marginal tax rate). e. Pretax income − Interest expense − Taxes. Phản hồi The correct answer is: Dividends + Addition to retained earnings. Câu Hỏi 54ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi In the accounting statement of cash flows, interest expense is: a. included in operations. Đúng b. included as an investing activity. c. included both as an operating and as a financing activity. d. ignored completely. e. included as a financing activity. Phản hồi The correct answer is: included in operations. Câu Hỏi 55ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of the following statements concerning liquidity is correct? a. If you can sell an asset next year at a price equal to its actual value, the asset is highly liquid. b. The less liquidity a firm has, the lower the probability the firm will encounter financial difficulties. c. Liquid assets are defined as those assets obtained within the past year. d. Balance sheet accounts are listed in order of decreasing liquidity. Đúng e. Liquid assets generally earn higher rates of return than fixed assets. Phản hồi The correct answer is: Balance sheet accounts are listed in order of decreasing liquidity. Câu Hỏi 56ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi AC Motors is a sole proprietorship that has taxable income of $94,200. How much additional tax will be owed if the taxable income increases by $14,300 based on the following tax rates? Assume this is the sole source of income for the owner. Taxable Income Tax Rate $ 0 − 9,525     10 %     9,526 − 38,700     12       38,701 − 82,500     22     can only occur when a firm has positive net income. c. means that stockholders' equity must also increase. d. requires an investment in fixed assets. e. must be offset by an equal increase in liabilities and stockholders' equity. Đúng Phản hồi The correct answer is: must be offset by an equal increase in liabilities and stockholders' equity. Câu Hỏi 62ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Pete's Boats has beginning long-term debt of $840 and ending long-term debt of $790. The beginning and ending total debt balances are $1,220 and $1,360, respectively. The interest paid is $30. What is the amount of the cash flow to creditors? a. $110 b. $80 CF(B) = $30 − ($790 − 840) CF(B) = $80 c. −$80 d. $20 e. −$110 Phản hồi The correct answer is: $80 Câu Hỏi 63ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which account represents the book value of all of a corporation's net profits less its dividend payments? a. Common stock b. Preferred stock c. Capital surplus d. Treasury stock e. Accumulated retained earnings Đúng Phản hồi The correct answer is: Accumulated retained earnings Câu Hỏi 64ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of these is related to an increase in the book value of the stockholders' equity in a profitable, non-dividend paying firm? Assume no shares of stock are repurchased or sold. a. A decrease in the book value of inventory b. An increase in the market value of the firm's long-term debt c. An increase in non-cash expenses d. An increase in earnings per share Đúng e. An increase in the market value of the firm's buildings Phản hồi The correct answer is: An increase in earnings per share Câu Hỏi 65ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The cash flow of the firm must be equal to the: a. aftertax operating cash flow. b. cash flow to stockholders minus the cash flow to creditors. c. cash flow to governments plus the cash flow to stockholders. d. cash flow to stockholders plus the cash flow to creditors. Đúng e. cash flow to creditors minus the cash flow to stockholders. Phản hồi The correct answer is: cash flow to stockholders plus the cash flow to creditors. Câu Hỏi 66ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Under Generally Accepted Accounting Principles (GAAP), a firm's assets are reported at: a. liquidation value less accumulated depreciation. b. historical cost less accumulated depreciation. Đúng c. liquidation value. d. market value. e. market value less accumulated depreciation. Phản hồi The correct answer is: historical cost less accumulated depreciation. Câu Hỏi 67ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of these is most apt to be a fixed, cash expense in the short run? a. Bond interest Đúng b. Manufacturing labor costs c. Depreciation d. Raw materials cost e. Commissions paid to sales representatives Phản hồi The correct answer is: Bond interest Câu Hỏi 68ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Thompson's Jet Skis has operating cash flow of $11,618. Depreciation is $2,345 and interest paid is $395. A net total of $485 was paid on long-term debt. The firm spent $6,180 on fixed assets and decreased net working capital by $420. What is the cash flow of the firm? a. $7,363 b. $8,203 c. $9,228 d. $5,018 e. $5,858 CF(A) = $11,618 − 6,180 − (−$420) CF(A) = $5,858 Phản hồi The correct answer is: $5,858 Câu Hỏi 69ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of these does not affect the cash flow to creditors? a. Interest paid on long-term debt b. Increase in accounts payable Đúng c. New mortgage on a building d. Reduction in long-term debt e. Mortgage interest payment Phản hồi The correct answer is: Increase in accounts payable Câu Hỏi 70ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi If a firm's financial managers successfully meet their primary goal, then the firm's: a. net working capital will exceed its long-term debt. b. equity will exceed its assets. c. market value will exceed its book value. Đúng d. carrying value will exceed its market value. e. debts will exceed its equity. a. $1,893 b. $1,933 c. $2,933 CF(S) = .30($8,110) − (−$500) CF(S) = $2,933 d. $2,433 e. $2,893 Phản hồi The correct answer is: $2,933 Câu Hỏi 77ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi For a growing firm, the change in net working capital is generally: a. negative. b. positive. Đúng c. equal to zero. d. highly negative. e. highly erratic. Phản hồi The correct answer is: positive. Câu Hỏi 78ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of these statements is correct? a. Only current taxes are included in the tax expense. b. Pretax income is equal to net income minus taxes. c. Earnings per share can be negative but dividends per share cannot. Đúng d. The addition to retained earnings is equal to net income plus dividends. e. Operating income is equal to operating revenue minus cost of goods sold. Phản hồi The correct answer is: Earnings per share can be negative but dividends per share cannot. Câu Hỏi 79ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi As of 2018, the U.S. corporate tax rate is: a. based on a tiered, multi-rate flat tax. b. based on a progressive tax rate schedule. c. a flat tax of 34 percent. d. zero with all corporate taxable income passed to shareholders. e. a flat rate of 21 percent. Đúng Phản hồi The correct answer is: a flat rate of 21 percent. Câu Hỏi 80ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Capital spending is equal to: a. beginning total assets plus asset purchases minus asset sales. b. ending total assets minus beginning total assets. c. ending net fixed assets minus beginning net fixed assets. d. ending net fixed assets minus beginning net fixed assets plus depreciation. Đúng e. ending total assets minus beginning total assets plus depreciation. Phản hồi The correct answer is: ending net fixed assets minus beginning net fixed assets plus depreciation. Câu Hỏi 81ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Operating cash flow is defined as: a. EBIT + Depreciation − Taxes. Đúng b. Pretax income + Depreciation. c. Pretax income − Taxes. d. Cash flow to investors + Taxes. e. Net income − Dividends. Phản hồi The correct answer is: EBIT + Depreciation − Taxes. Câu Hỏi 82ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi According to Generally Accepted Accounting Principles (GAAP), revenue is recognized as income when: a. the transaction is complete and the goods or services are delivered. Đúng b. a contract is signed to perform a service or deliver a good. c. managers decide to recognize it. d. payment is requested. e. income taxes are paid on the revenue earned. Phản hồi The correct answer is: the transaction is complete and the goods or services are delivered. Câu Hỏi 83ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi For the year, Jensen's has depreciation of $2,058, dividends paid of $125, interest expense of $382, an addition to retained earnings of $3,408, and an increase in common stock of $2,500. The total tax rate is 21 percent. What is the operating cash flow? a. $6,408 b. $6,460 c. $5,735 d. $5,325 e. $5,973 Net income = $125 + 3,408 Net income = $3,533   Pre-tax income = $3,533/(1 − .21) Pre-tax income = $4,472.15   EBIT = $4,472.15 + 382 EBIT = $4,854.15   OCF = $4,854.15 + 2,058 − ($4,472.15 − 3,533) OCF = $5,973 Phản hồi The correct answer is: $5,973 Câu Hỏi 84ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Noncash items refer to: a. the costs incurred for the purchase of intangible fixed assets. b. the credit sales of a firm. c. all accounts on the balance sheet other than cash on hand. d. the accounts payable of a firm. e. expenses charged against revenues that do not directly affect cash flow. Đúng Phản hồi The correct answer is: expenses charged against revenues that do not directly affect cash flow. Câu Hỏi 85ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi For a tax-paying firm, an increase in the depreciation expense of $1 will: a. increase net income by $1. b. The correct answer is: $1,038 Câu Hỏi 91ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi On a balance sheet, deferred taxes are classified as: a. a current asset. b. stockholders' equity. c. a current liability. d. a fixed asset. e. a long-term liability. Đúng Phản hồi The correct answer is: a long-term liability. Câu Hỏi 92ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Assets are listed on the balance sheet in order of: a. book value. b. acquisition. c. market value relative to book value. d. decreasing liquidity. Đúng e. increasing size. Phản hồi The correct answer is: decreasing liquidity. Câu Hỏi 93ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Free cash flow is: a. the cash generated by decreasing net working capital. b. another term for operating cash flow. c. the net income of a firm after taxes have been paid. d. cash that the firm can distribute to creditors and stockholders. Đúng e. the money generated from the sale of new shares of stock. Phản hồi The correct answer is: cash that the firm can distribute to creditors and stockholders. Câu Hỏi 94ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Deep Water Mining added $411 to retained earnings last year on sales of $24,646. The administrative expenses were $4,370, depreciation was $812, dividends paid were $285, and the interest expense was $103. What was the cost of goods sold if the total tax rate was 23 percent? a. $20,225 b. $24,385 c. $21,393 d. $18,457 Net income = $285 + 411 Net income = $696   Pretax income = $696/(1 − .23) Pretax income = $904   COGS = $24,646 − 4,370 − 812 − 103 − 904 COGS = $18,457 e. $14,815 Phản hồi The correct answer is: $18,457 Câu Hỏi 95ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Payments to creditors that include interest and the repayment of principal are referred to as: a. the reduction in net working capital. b. the cash flow to stockholders. c. operating cash flow. d. debt service. Đúng e. the change in net working capital. Phản hồi The correct answer is: debt service. Câu Hỏi 96ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The cash flow to stockholders must be positive when: a. no income is distributed but new shares of stock are sold. b. the cash flow from assets is positive and exceeds the cash flow to creditors. Đúng c. both the cash flow to assets and the cash flow to creditors are positive. d. the dividends paid are less than the amount of net new equity raised. e. the net sale of common stock exceeds the amount of dividends paid. Phản hồi The correct answer is: the cash flow from assets is positive and exceeds the cash flow to creditors. Câu Hỏi 97ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of these equations is an accurate expression of the balance sheet? a. Assets ≡ Liabilities − Stockholders' equity b. Stockholders' equity ≡ Assets − Liabilities Đúng c. Assets ≡ Stockholders' equity − Liabilities d. Stockholders' equity ≡ Assets + Liabilities e. Liabilities ≡ Stockholders' equity − Assets Phản hồi The correct answer is: Stockholders' equity ≡ Assets − Liabilities Câu Hỏi 98ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Cash flow to stockholders is defined as: a. cash dividends paid. b. repurchases of equity less new equity sold minus cash dividends paid. c. cash flow from assets plus cash flow to creditors. d. cash flow from financing less cash flow to creditors. e. cash dividends paid plus repurchases of equity minus new equity financing. Đúng Phản hồi The correct answer is: cash dividends paid plus repurchases of equity minus new equity financing. Chương 3: Câu Hỏi 1ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of the following statements is correct concerning ratio analysis? a. A single ratio is often computed differently by different individuals. Đúng b. No ratio can address the problem of size differences among firms. c. Only a very limited number of ratios can be used for analytical purposes. d. Every ratio is an income statement entry divided by a balance sheet item. e. Ratios cannot be used for comparison purposes over periods of time. Phản hồi The correct answer is: A single ratio is often computed differently by different individuals. Câu Hỏi 2ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi low cash ratio and a low PE ratio. e. high PE ratio and a high EV multiple. Đúng Phản hồi The correct answer is: high PE ratio and a high EV multiple. Câu Hỏi 9ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Leo's Markets has sales of $684,000, costs of $437,000, interest paid of $13,800, total assets of $712,000, and depreciation of $109,400. The tax rate is 21 percent and the equity multiplier is 1.6. What is the return on equity? a. 21.30 percent b. 19.48 percent c. 23.92 percent d. 21.98 percent Net income = ($684,000 − 437,000 − 109,400 − 13,800)(1 − .21) Net income = $97,802   Equity = $712,000/1.6 Equity = $445,000   ROE = $97,802/$445,000 ROE = .2198, or 21.98% e. 20.06 percent Phản hồi The correct answer is: 21.98 percent Câu Hỏi 10ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Northern Industries has accounts receivable of $42,300, inventory of $61,200, sales of $544,200, and cost of goods sold of $393,500. How many days, on average, does it take the firm to sell its inventory? a. 56.77 Days' sales in inventory = 365/($393,500/$61,200) Days' sales in inventory = 56.77 b. 74.92 c. 85.14 d. 93.08 e. 80.46 Phản hồi The correct answer is: 56.77 Câu Hỏi 11ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of these terms is most synonymous with the term "income from operations"? a. TTM b. EBITDA c. EBIT Đúng d. EPS e. LTM Phản hồi The correct answer is: EBIT Câu Hỏi 12ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The sustainable growth rate: a. assumes the debt-equity ratio is variable. b. is normally higher than the internal growth rate. Đúng c. assumes the dividend payout ratio is equal to zero. d. is based on receiving additional external equity financing. e. assumes there is no external financing of any kind. Phản hồi The correct answer is: is normally higher than the internal growth rate. Câu Hỏi 13ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Preston Woods has 17,500 shares of stock outstanding along with $408,000 of interest-bearing debt. The market and book values of the debt are the same. The firm has sales of $697,000 and a profit margin of 6.8 percent. The tax rate is 21 percent, the debt-equity ratio is 40 percent, and the price- earnings ratio is 11.8. The firm has $130,000 of current assets of which $41,200 is cash. What is the enterprise value? a. $1,018,097 b. $994,520 c. $830,479 d. $926,073 Enterprise value = 11.8[.068($697,000)] + $408,000 − 41,200 Enterprise value = $926,073 e. $1,106,308 Phản hồi The correct answer is: $926,073 Câu Hỏi 14ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Southern Foods has net income of $39,900, net sales of $318,600, total assets of $663,000, common stock of $106,800 with a par value of $1 per share, and retained earnings of $224,400. The stock has a market value of $5.45 per share. What is the price-earnings ratio? a. 17.12 b. 16.64 c. 19.94 d. 14.59 PE ratio = $5.45/[$39,900/($106,800/$1)] PE ratio = 14.59 e. 12.82 Phản hồi The correct answer is: 14.59 Câu Hỏi 15ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi If stockholders want to know how much profit the firm is making on their entire investment in that firm, the stockholders should refer to the: a. earnings per share. b. return on assets. c. equity multiplier. d. profit margin. e. return on equity. Đúng Phản hồi The correct answer is: return on equity. Câu Hỏi 16ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The current ratio is measured as: a. current assets minus current liabilities. b. current liabilities divided by current assets. c. cash on hand divided by current liabilities. d. current assets divided by current liabilities. Đúng e. current liabilities minus inventory, divided by current assets. Phản hồi The correct answer is: current assets divided by current liabilities. Câu Hỏi 17ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Câu Hỏi 23ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Georgetown Supply has sales of $318,200, net income of $41,400, current assets of $118,400, net fixed assets of $238,300, net working capital of $18,900, and long-term debt of $175,000. What is the equity multiplier? a. 1.44 b. 3.82 c. 2.92 d. 4.34 Equity multiplier = ($118,400 + 238,300)/[$118,400 + 238,300 − ($118,400 − 18,900) − $175,000] Equity multiplier = 4.34 e. 1.71 Phản hồi The correct answer is: 4.34 Câu Hỏi 24ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The Lumber Mill has total assets of $591,600, current liabilities of $49,700, dividends paid of $12,000, net sales of $68,400, and net income of $55,400. Assume that all costs, assets, and current liabilities change spontaneously with sales. The tax rate and dividend payout ratios remain constant. If the firm's managers project a firm growth rate of 6 percent for next year, what will be the amount of external financing needed to support this level of growth? Assume the firm is currently operating at full capacity. a. −$17,520 b. $16,380 c. −$13,490 EFN = $591,600(.06) − $49,700(.06) − $55,400(1.06)[1 − ($12,000/$55,400)] EFN = −$13,490 d. $15,640 e. $3,200 Phản hồi The correct answer is: −$13,490 Câu Hỏi 25SaiĐạt điểm 0,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Ratios that measure a firm's ability to pay its bills over the short run without undue stress are known as: a. asset management ratios. b. profitability ratios. c. liquidity measures. d. long-term solvency measures. Sai e. market value ratios. Phản hồi The correct answer is: liquidity measures. Câu Hỏi 26ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The financial ratio measured as net income divided by sales is known as the firm's: a. asset turnover. b. return on assets. c. return on equity. d. earnings before interest and taxes. e. profit margin. Đúng Phản hồi The correct answer is: profit margin. Câu Hỏi 27ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi A firm has 12,000 shares of stock outstanding, sales of $638,100, a profit margin of 8.2 percent, a tax rate of 21 percent, a price-earnings ratio of 11.3, and a book value per share of $7.98. What is the market-to-book ratio? a. 6.90 b. 5.42 c. 5.16 d. 6.17 Market-to-book ratio = {11.3[.082($638,100)]/12,000}/$7.98 Market-to-book ratio = 6.17 e. 6.08 Phản hồi The correct answer is: 6.17 Câu Hỏi 28ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The market-to-book ratio is measured as the: a. net income per share divided by the market price per share. b. market price per share divided by the net income per share. c. market price per share divided by the dividends per share. d. market value per share divided by the book value per share. Đúng e. market price per share divided by the par value per share. Phản hồi The correct answer is: market value per share divided by the book value per share. Câu Hỏi 29ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Cado Industries has total debt of $6,800 and a debt-equity ratio of .36. What is the value of the total assets? a. $24,480 b. $25,689 Total equity = $6,800/.36 Total equity = $18,889   Total assets = $6,800 + 18,889 Total assets = $25,689 c. $23,520 d. $25,360 e. $18,889 Phản hồi The correct answer is: $25,689 Câu Hỏi 30ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi From a cash flow position, which one of the following ratios best measures a firm's ability to pay the interest on its debts? a. Times interest earned ratio b. Cash coverage ratio Đúng c. Interval measure d. Quick ratio e. Cash ratio Phản hồi The correct answer is: Cash coverage ratio Câu Hỏi 31ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of these values best represents the funds needed to acquire a firm and payoff all of that firm's debt? a. Return on assets b. Enterprise value Đúng c. Market value of total assets d. c. a profit margin d. a return on assets e. a price-earnings ratio Phản hồi The correct answer is: a return on equity Câu Hỏi 38ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Southern Markets has sales of $78,400, net income of $2,400, costs of goods sold of $43,100, and depreciation of $6,800. What is the common-size statement value of EBIT? a. 32.49 percent b. 35.46 percent c. 41.93 percent d. 36.35 percent Common-size EBIT = ($78,400 − 43,100 − 6,800)/$78,400 Common-size EBIT = .3635, or 36.35% e. 38.08 percent Phản hồi The correct answer is: 36.35 percent Câu Hỏi 39ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Financial planning models are most apt to omit: a. any additions that might be needed to fixed assets. b. the changes in net working capital required for additional sales. c. any change in retained earnings due to changes in the income statement. d. the increases in costs required to increase sales. e. the timing, risk, and size of the cash flows. Đúng Phản hồi The correct answer is: the timing, risk, and size of the cash flows. Câu Hỏi 40ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of the following statements is correct if a firm has a receivables turnover of 10? a. It takes the firm 36.5 days to sell its inventory and collect the payment from the sale. b. The firm has ten times more in accounts receivable than it does in cash. c. It takes the firm an average of 36.5 days to sell its items. d. The firm collects its credit sales in an average of 36.5 days. Đúng e. It takes the firm 10 days to collect payment from its customers. Phản hồi The correct answer is: The firm collects its credit sales in an average of 36.5 days. Câu Hỏi 41ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Narrow Falls Lumber has total assets of $913,600, total debt of $424,500, net sales of $848,600, and net income of $94,000. The tax rate is 21 percent and the dividend payout ratio is 30 percent. What is the firm's sustainable growth rate? a. 14.91 percent b. 13.97 percent c. 12.63 percent d. 14.46 percent e. 15.54 percent Sustainable growth rate = {[$94,000/($913,600 – 424,500)](1 – .30)}/(1 – {[$94,000/($913,600 – 424,500)](1 – .30)}) Sustainable growth rate = .1554, or 15.54% Phản hồi The correct answer is: 15.54 percent Câu Hỏi 42ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Home Systems has sales of $312,800, cost of goods sold of $218,400, inventory of $46,300, and accounts receivable of $62,700. How many days, on average, does it take the firm to both sell its inventory and collect payment on the sale? a. 178.21 b. 142.10 c. 150.54 Days' sales in inventory = 365/($218,400/$46,300) Days' sales in inventory = 77.38   Days' sales in receivables = 365/($312,800/$62,700) Days' sales in receivables = 73.16   Total days' sales in inventory and receivables = 77.38 + 73.16 Total days' sales in inventory and receivables = 150.54 d. 124.03 e. 96.37 Phản hồi The correct answer is: 150.54 Câu Hỏi 43SaiĐạt điểm 0,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The amount that investors are willing to pay for each dollar of annual earnings is reflected in the: a. return on equity. b. debt-equity ratio. c. price-earnings ratio. d. return on assets. Sai e. DuPont identity. Phản hồi The correct answer is: price-earnings ratio. Câu Hỏi 44ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Enterprise value is based on the: a. market value of equity plus the book value of total debt minus cash. b. market value of interest-bearing debt plus the market value of equity minus cash. Đúng c. book values of debt and equity less cash. d. book values of debt and assets, other than cash. e. book value of debt plus the market value of equity. Phản hồi The correct answer is: market value of interest-bearing debt plus the market value of equity minus cash. Câu Hỏi 45ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The Blue Giant has a profit margin of 6.2 percent and a dividend payout ratio of 40 percent. The capital intensity is 1.08 and the debt-equity ratio is .54. What is the sustainable rate of growth? a. 5.89 percent b. 6.41 percent c. 5.60 percent ROE = .062(1/1.08)(1 + .54) ROE = .088407   Sustainable growth rate = [.088407(1 −.40)]/{1 – [.088407(1 − .40)]} Sustainable growth rate = .0560, or 5.60% d. 5.53 percent e. 6.30 percent Phản hồi The correct answer is: 5.60 percent Câu Hỏi 46ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Green Lumber has total sales of $387,200 on total assets of $429,600, current liabilities of $45,000, and $24,000 of dividends paid on net income of $57,700. Assume that all costs, assets, and current liabilities change spontaneously with sales. The tax rate and dividend payout ratios remain The correct answer is: 6.93 percent Câu Hỏi 52ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The receivables turnover ratio is measured as: a. accounts receivable divided by sales. b. sales plus accounts receivable. c. sales minus accounts receivable, divided by sales. d. accounts receivable times sales. e. sales divided by accounts receivable. Đúng Phản hồi The correct answer is: sales divided by accounts receivable. Câu Hỏi 53ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The total asset turnover ratio measures the amount of: a. net income that can be generated by every $1 of fixed assets. b. total assets needed for every $1 of sales. c. sales generated by every $1 in total assets. Đúng d. fixed assets required for every $1 of sales. e. net income generated by every $1 in total assets. Phản hồi The correct answer is: sales generated by every $1 in total assets. Câu Hỏi 54ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Two Sisters Dresses has net working capital of $43,800, net fixed assets of $232,400, net income of $43,900, and current liabilities of $51,300. The tax rate is 21 percent and the profit margin is 9.3 percent. How many dollars of sales are generated from every $1 in total assets? a. $1.44 Total asset turnover = ($43,900/.093)/($43,800 + 51,300 + 232,400) Total asset turnover = 1.44   Every $1 in total assets generates $1.44 in sales. b. $1.32 c. $1.06 d. $1.73 e. $.97 Phản hồi The correct answer is: $1.44 Câu Hỏi 55ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Upriver Tours has balance sheet values of: Inventory $70,500; accounts receivable $50,700; accounts payable $58,900; cash $32,300, notes payable $20,000, long-term debt $134,700, and net fixed assets $504,500. What is the current ratio? a. .95 b. 1.98 c. .98 d. 1.95 Current ratio = ($32,300 + 50,700 + 70,500)/($58,900 + 20,000) Current ratio = 1.95 e. 2.11 Phản hồi The correct answer is: 1.95 Câu Hỏi 56ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Browning's has a debt-equity ratio of .47. What is the equity multiplier? a. .53 b. 1.13 c. 1.47 EM = Total assets/Total equity EM = Total equity/Total equity + Total debt/Total equity EM = 1 + .47 EM = 1.47 d. 1.53 e. 2.13 Phản hồi The correct answer is: 1.47 Câu Hỏi 57ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The debt-equity ratio is measured as: a. long-term debt divided by total equity. b. total equity divided by total debt. c. total assets minus total debt, divided by total equity. d. total debt divided by total equity. Đúng e. total equity divided by long-term debt. Phản hồi The correct answer is: total debt divided by total equity. Câu Hỏi 58ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of the following sets of ratios would generally be of the most interest to stockholders? a. Cash coverage ratio and equity multiplier b. Price-earnings ratio and debt-equity ratio c. Quick ratio and times interest earned d. Return on equity and price-earnings ratio Đúng e. Return on assets and profit margin Phản hồi The correct answer is: Return on equity and price-earnings ratio Câu Hỏi 59ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi An increase in which one of the following accounts increases a firm's current ratio without affecting its quick ratio? a. Accounts receivable b. Cash c. Inventory Đúng d. Fixed assets e. Accounts payable Phản hồi The correct answer is: Inventory Câu Hỏi 60ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi If a firm produces a return on assets of 15 percent and also a return on equity of 15 percent, then the firm: a. is using its assets as efficiently as possible. b. has an equity multiplier of 2. c. pays all its earnings out in dividends. d. has no debt of any kind. Đúng e. also has a current ratio of 15. Phản hồi The correct answer is: has no debt of any kind. Câu Hỏi 61ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Projected future financial statements are called: a. reconciled statements. b. imaginative statements. c. comparative statements. d. aggregated statements. e. pro forma statements. Đúng Phản hồi The correct answer is: pro forma statements. Câu Hỏi 68ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Ratios that measure how efficiently a firm's management uses its assets and equity to generate bottom line net income are known as _______ ratios. a. long-term solvency b. short-term solvency c. profitability Đúng d. asset management e. market value Phản hồi The correct answer is: profitability Câu Hỏi 69ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Days' sales in inventory is measured as: a. inventory turnover times 365 days. b. inventory turnover plus 365 days. c. inventory divided by cost of goods sold, times 365 days. d. 365 days divided by the inventory. e. 365 days divided by the inventory turnover. Đúng Phản hồi The correct answer is: 365 days divided by the inventory turnover. Câu Hỏi 70ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi A capital intensity ratio of 1.03 means a firm has $1.03 in: a. long-term assets for every $1 in short-term assets. b. equity for every $1 in total debt. c. sales for every $1 in total assets. d. total debt for every $1 in equity. e. total assets for every $1 in sales. Đúng Phản hồi The correct answer is: total assets for every $1 in sales. Câu Hỏi 71ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of these ratios measures the efficiency at which a firm employs its assets? a. Return on equity b. Equity multiplier c. Total asset turnover Đúng d. Profit margin e. P/E ratio Phản hồi The correct answer is: Total asset turnover Câu Hỏi 72ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The sustainable rate of growth for a firm can be increased by: a. increasing the dividend payout ratio. b. increasing the total asset turnover. Đúng c. increasing the capital intensity ratio. d. decreasing the profit margin. e. decreasing the debt-equity ratio. Phản hồi The correct answer is: increasing the total asset turnover. Câu Hỏi 73ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Highland Lumber has net sales of $642,100, depreciation of $138,400, interest expense of $15,600, cost of goods sold of $409,800, and taxes of $16,400. What is the cash coverage ratio? a. 6.02 b. 11.06 c. 14.89 Cash coverage ratio = ($642,100 − 409,800)/$15,600 Cash coverage ratio = 14.89 d. 13.79 e. 8.78 Phản hồi The correct answer is: 14.89 Câu Hỏi 74ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi You would like to compare your firm's cost structure to that of your competitors. However, your competitors are much larger in size than your firm. Which one of these would best enable you to compare costs across your industry? a. Common-size income statement Đúng b. Pro forma income statement c. Pro forma balance sheet d. Statement of cash flows e. Common-size balance sheet Phản hồi The correct answer is: Common-size income statement Câu Hỏi 75ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Ratios that measure how efficiently a firm uses its assets to generate sales are known as _______ ratios. a. profitability b. market value c. long-term solvency d. asset management Đúng e. short-term solvency Phản hồi The correct answer is: asset management Câu Hỏi 76ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The inventory turnover ratio is measured as: a. inventory divided by cost of goods sold. b. cost of goods sold divided by inventory. Đúng c. inventory divided by sales. d. 15.48 percent e. 15.10 percent Debt-equity ratio = 1.8 − 1 Debt-equity ratio = .8   Equity = $144,400/.8 Equity = $180,500   ROE = .086($317,000)/$180,500 ROE = .1510, or 15.10% Phản hồi The correct answer is: 15.10 percent Câu Hỏi 83ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi JB Markets has sales of $848,600, net income of $94,000, dividends paid of $28,200, total assets of $913,600, and current liabilities of $78,900. Assume that all costs, assets, and current liabilities change spontaneously with sales. The tax rate and dividend payout ratios remain constant. If the firm's managers project a firm growth rate of 15 percent for next year, what will be the amount of external financing needed to support this level of growth? Assume the firm is currently operating at full capacity. a. $32,408 b. $13,909 c. $49,535 EFN = $913,600(.15) − $78,900(.15) − $94,000(1.15)[1 − ($28,200/$94,000)] EFN = $49,535 d. −$10,406 e. $68,211 Phản hồi The correct answer is: $49,535 Câu Hỏi 84ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi A public firm's market capitalization is equal to the: a. total book value of assets less the book value of debt. b. stock price per share multiplied by the number of shares authorized. c. maximum value an acquirer would pay for the firm in an acquisition. d. par value of common equity. e. price per share multiplied by number of shares outstanding. Đúng Phản hồi The correct answer is: price per share multiplied by number of shares outstanding. Câu Hỏi 85ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The return on equity can be calculated as: a. ROA × Net income/Total assets. b. Profit margin × ROA. c. ROA × Debt-equity ratio. d. Profit margin × ROA × Total asset turnover. e. ROA × Equity multiplier. Đúng Phản hồi The correct answer is: ROA × Equity multiplier. Câu Hỏi 86ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The sustainable growth rate will be equivalent to the internal growth rate when, and only when: a. the plowback ratio is positive but less than 1. b. the retention ratio is equal to 1. c. a firm has a debt-equity ratio equal to 1. d. the growth rate is positive. e. a firm has no debt. Đúng Phản hồi The correct answer is: a firm has no debt. Câu Hỏi 87ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The equity multiplier is measured as total: a. assets minus total equity, divided by total assets. b. assets plus total equity, divided by total debt. c. equity divided by total assets. d. equity plus total debt. e. assets divided by total equity. Đúng Phản hồi The correct answer is: assets divided by total equity. Câu Hỏi 88ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The most effective method of directly evaluating the financial performance of a firm is to compare the financial ratios of the firm to: a. those of other firms located in the same geographic area that are similarly sized. b. the average ratios of all firms within the same country over a period of time. c. those of the largest conglomerate that has operations in the same industry as the firm. d. the firm's ratios from prior time periods and to the ratios of firms with similar operations. Đúng e. the average ratios of the firm's international peer group. Phản hồi The correct answer is: the firm's ratios from prior time periods and to the ratios of firms with similar operations. Câu Hỏi 89ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Discount Mart has $876,400 in sales with a profit margin of 3.8 percent. There are 32,500 shares of stock outstanding at a market price per share of $21.60. What is the price-earnings ratio? a. 22.60 b. 18.47 c. 23.40 d. 19.21 e. 21.08 PE ratio = $21.60/{[.038($876,400)]/32,500} PE ratio = 21.08 Phản hồi The correct answer is: 21.08 Câu Hỏi 90ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Joe's has old, fully depreciated equipment. Moe's just purchased all new equipment which will be depreciated over eight years. If Joe's and Moe's have the same sales, costs, tax rate, and enterprise value, then: a. Moe's will have a higher net income. b. Joe's will have a lower profit margin. c. Joe's will have a lower return on equity. d. Moe's and Joe’s will have the same EV multiple. Đúng e. Moe's will have a lower EV multiple. Phản hồi The correct answer is: Moe's and Joe’s will have the same EV multiple. Câu Hỏi 91ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Which one of the following is most apt to cause a profitable, stable firm to have a higher price- earnings ratio? a. Low investor opinion of firm Câu Hỏi 97ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Turner's Inc. has a price-earnings ratio of 16. Alfred's Co. has a price-earnings ratio of 19. Thus, you can state with certainty that one share of stock in Alfred's: a. has a higher market price per dollar of earnings than does one share of Turner's. Đúng b. sells at a lower price per share than one share of Turner's. c. has a higher market price than one share of stock in Turner's. d. represents a larger percentage of firm ownership than does one share of Turner's stock. e. earns a greater profit per share than does one share of Turner's stock. Phản hồi The correct answer is: has a higher market price per dollar of earnings than does one share of Turner's. Câu Hỏi 98ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Last year, Alfred's Automotive had a price-earnings ratio of 15 and earnings per share of $1.20. This year, the price-earnings ratio is 18 and the earnings per share is $1.20. Based on this information, it can be stated with certainty that: a. the earnings per share decreased. b. the investors' outlook for the firm has improved. Đúng c. the price per share decreased. d. investors are receiving a higher rate of return this year. e. investors are paying a lower price per share this year as compared to last year. Phản hồi The correct answer is: the investors' outlook for the firm has improved. Câu Hỏi 99SaiĐạt điểm 0,00 trên 1,00Đặt cờ Đoạn văn câu hỏi New Metals has depreciation of $28,300, interest expense of $11,400, EBIT of $62,700, a price- earnings ratio of 8.6, a profit margin of 7.2 percent, a tax rate of 21 percent, and 37,500 shares of stock outstanding. What is the market price per share? a. $12.48 b. $9.29 c. $13.48 d. $10.92 Market price per share = 8.6{[($62,700 − 11,400)(1 − .21)]/37,500} Market price per share = $9.29 e. $7.09 Phản hồi The correct answer is: $9.29 Câu Hỏi 100ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Kelso's has a return on equity of 16.2 percent, a debt-equity ratio of 44 percent, a capital intensity ratio of 1.08, a current ratio of 1.25, and current assets of $138,000. What is the profit margin? a. 13.69 percent b. 9.72 percent c. 15.19 percent d. 7.48 percent e. 12.15 percent Profit margin = .162/[(1/1.08)(1 + .44)] Profit margin = .1215, or 12.15% Phản hồi The correct answer is: 12.15 percent Câu Hỏi 101ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Vinnie's Motors has a market-to-book ratio of 3.4. The book value per share is $34 and earnings per share are $1.36. Holding the market-to-book ratio and earnings per share constant, a $1 increase in the book value per share will: a. decrease the price-earnings ratio. b. increase the price-earnings ratio. Đúng c. increase the return on equity. d. decrease the EV multiple. e. decrease the market price per share. Phản hồi The correct answer is: increase the price-earnings ratio. Câu Hỏi 102ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The least problems encountered when comparing the financial statements of one firm with those of another firm occur when the firms: a. have geographically diverse operations. b. are both classified as conglomerates. c. are in different lines of business. d. have the same fiscal year-end. Đúng e. use different methods of depreciation. Phản hồi The correct answer is: have the same fiscal year-end. Chương 4: U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000 today. A final deposit of $3,500 will be made one year from now. What will the account balance be three years from now if the account pays 4.85 percent interest, compounded annually? a. $13,666.10 FV3 = $3,200(1.04855) + $5,000(1.04853) + $3,500(1.04852) FV3 = $13,666.10 b. $14,328.90 c. $13,033.95 d. $13,430.84 e. $12,431.05 Phản hồi The correct answer is: $13,666.10 Câu Hỏi 2ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Taylor's Hardware offers credit at an APR of 14.9 percent and compounds interest monthly. What actual rate of interest are they charging? a. 15.48 percent b. 16.10 percent c. 14.90 percent d. 15.96 percent EAR = (1 + .149/12)12− 1 EAR = .1596, or 15.96% e. 13.97 percent Phản hồi The correct answer is: 15.96 percent Câu Hỏi 3ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi A flow of unending annual payments that increase by a set percentage each year and occur at regular intervals of time is called a: a. variable perpetuity. b. growing annuity. c. variable annuity. d. growing perpetuity. Đúng e. annuity due. Phản hồi The correct answer is: growing perpetuity. The correct answer is: $3,710,329 Câu Hỏi 10ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The Smart Bank wants to be competitive based on quoted loan rates and thus must offer loans at an annual percentage rate of 7.9 percent. What is the maximum rate the bank can actually earn based on this quoted rate? a. 8.22 percent EAR = e.079− 1 EAR = .0822, or 8.22% b. 8.18 percent c. 8.20 percent d. 8.39 percent e. 7.90 percent Phản hồi The correct answer is: 8.22 percent Câu Hỏi 11ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi The government imposed a fine on a firm that requires a payment of $100,000 today, $150,000 one year from today, and $200,000 two years from today. The government will hold the funds until the final payment is collected and then donate the entire amount to charity. How much will be donated if the government pays 3 percent interest on the held funds? a. $474,407 b. $460,590 FV = $100,000(1.032) + $150,000(1.03) + $200,000 FV = $460,590 c. $447,174 d. $451,050 e. $475,000 Phản hồi The correct answer is: $460,590 Câu Hỏi 12ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi What is the effective annual rate of 10.25 percent compounded continuously? a. 11.11 percent b. 11.04 percent c. 10.86 percent d. 10.79 percent EAR = e.1025− 1 EAR = .1079, or 10.79% e. 10.98 percent Phản hồi The correct answer is: 10.79 percent Câu Hỏi 13ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi A perpetuity differs from an annuity because: a. perpetuity cash flows vary with the market rate of interest. b. perpetuity cash flows never cease. Đúng c. perpetuity cash flows vary with the rate of inflation. d. perpetuity cash flows are variable while annuity payments are constant. e. annuity cash flows occur at irregular intervals of time. Phản hồi The correct answer is: perpetuity cash flows never cease. Câu Hỏi 14ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi Christina will receive annuity payments of $1,200 a year for five years, with the first payment occurring at Year 4. What is the value of this annuity to her today at a discount rate of 7.25 percent? a. $4,887.48 b. $4,111.08 c. $4,774.04 d. $4,209.19 e. $3,961.80 APV3 = $1,200[(1 − 1/1.07255)/.0725] APV3 = $4,887.48   PV0 = $4,887.48/1.07253 PV0 = $3,961.80 Phản hồi The correct answer is: $3,961.80 Câu Hỏi 15ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi You are considering two projects. Project A has projected cash flows of $6,500, $4,500, and $2,500 for the next three years, respectively. Project B has projected cash flows of $2,500, $4,500, and $6,500 for the next three years, respectively. Assuming both projects have the same initial cost, you know that: a. Project B has a higher net present value than Project A. b. Project A is more valuable than Project B given a positive discount rate. Đúng c. both projects offer the same rate of return. d. both projects have equal net present values at any discount rate. e. there are no conditions under which the projects can have equal values. Phản hồi The correct answer is: Project A is more valuable than Project B given a positive discount rate. Câu Hỏi 16ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi An interest rate that is compounded monthly, but is expressed as if the rate were compounded annually, is called the _____ rate. a. stated interest b. periodic interest c. daily interest d. effective annual Đúng e. compound interest Phản hồi The correct answer is: effective annual Câu Hỏi 17ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi You are borrowing $5,200 at 7.8 percent, compounded monthly. The monthly loan payment is $141.88. How many loan payments must you make before the loan is paid in full? a. 48 b. 36 c. 42 $5,200 = $141.88{[1 − 1/(1 + .078/12)T]/(.078/12)} ln1.3127 = Tln1.0065 T = 42 d. 30 e. 40 Phản hồi The correct answer is: 42 Câu Hỏi 18ĐúngĐạt điểm 1,00 trên 1,00Đặt cờ Đoạn văn câu hỏi An insurance settlement offer includes annual payments of $36,000, $42,000, and $50,000 over the next three years, respectively, with the first payment being made one year from today. What is the minimum amount you should accept today as a lump sum settlement if your discount rate is 7 percent? a. $118,924.27 b. $114,556.88