Finance

6 years ago

Luther's return on assets (ROA) for the year ending December 31, 2009 is closest to:

Luther's return on assets (ROA) for the year ending December 31, 2009 is closest to:
A) 1.6%
B) 6.7%
C) 2.3%
D) 2.6%

johnpaech 79 1 Reply

6 years ago

Calculate Luther's return of equity (ROE), return of assets (ROA), and price-to-earnings ratio ...

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

Memphic 92 1 Reply

6 years ago

If Luther's accounts receivable were $55.5 million in 2009, then calculate Luther's accounts ...

If Luther's accounts receivable were $55.5 million in 2009, then calculate Luther's accounts receivable days for 2009.

Memphic 43 1 Reply

6 years ago

Luther's EBIT coverage ratio for the year ending December 31, 2008 is closest to:

Luther's EBIT coverage ratio for the year ending December 31, 2008 is closest to:
A) 1.64
B) 1.78
C) 1.98
D) 2.19

Memphic 65 1 Reply

6 years ago

Luther's EBIT coverage ratio for the year ending December 31, 2009 is closest to:

Luther's EBIT coverage ratio for the year ending December 31, 2009 is closest to:
A) 1.64
B) 1.78
C) 1.98
D) 2.19

johnpaech 64 1 Reply

6 years ago

Luther's EBITDA coverage ratio for the year ending December 31, 2009 is closest to:

Luther's EBITDA coverage ratio for the year ending December 31, 2009 is closest to:
A) 1.64
B) 1.78
C) 1.98
D) 2.19

Memphic 64 1 Reply

6 years ago

Wyatt Oil has a net profit margin of 4.0%, a total asset turnover of 2.2, total assets of $525 ...

Wyatt Oil has a net profit margin of 4.0%, a total asset turnover of 2.2, total assets of $525 million, and a book value of equity of $220 million. Wyatt Oil's current return-on-assets (ROA) is closest to:
A) 8.8%
B) 9.5%
C)

Memphic 273 1 Reply

6 years ago

Perrigo's return on equity (ROE) is closest to:

Perrigo's return on equity (ROE) is closest to:
A) 4.6%
B) 9.1%
C) 17.2%
D) 27%

Memphic 59 1 Reply

6 years ago

If ECE's return on assets (ROA) is 12%, then ECE's return on equity (ROE) is:

If ECE's return on assets (ROA) is 12%, then ECE's return on equity (ROE) is:
A) 10%
B) 12%
C) 18%
D) 22%

Memphic 66 1 Reply

6 years ago

If ECE's net profit margin is 8%, then ECE's return on equity (ROE) is:

If ECE's net profit margin is 8%, then ECE's return on equity (ROE) is:
A) 10%
B) 12%
C) 24%
D) 30%

Memphic 70 1 Reply

6 years ago

The firm's asset turnover measures:

The firm's asset turnover measures:
A) the value of assets held per dollar of shareholder equity.
B) the return the firm has earned on its past investments.
C) the firm's ability to sell a product for more than the cost of pr

johnpaech 58 1 Reply

6 years ago

If Firm A and Firm B are in the same industry and use the same production method, and Firm A's ...

If Firm A and Firm B are in the same industry and use the same production method, and Firm A's asset turnover is higher than that of Firm B, then all else equal we can conclude:
A) Firm A is more efficient than Firm B.
B) Firm A has a

Memphic 79 1 Reply

6 years ago

The firm's equity multiplier measures:

The firm's equity multiplier measures:
A) the value of assets held per dollar of shareholder equity.
B) the return the firm has earned on its past investments.
C) the firm's ability to sell a product for more than the cost of

johnpaech 59 1 Reply

6 years ago

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

The DuPont Identity expresses the firm's ROE in terms of:
A) profitability, asset efficiency, and leverage.
B) valuation, leverage, and interest coverage.
C) profitability, margins, and valuation.
D) equity, assets, and liabi

johnpaech 61 1 Reply

6 years ago

If Moon Corporation has an increase in sales, which of the following would result in no change in ...

If Moon Corporation has an increase in sales, which of the following would result in no change in its EBIT margin?
A) A proportional increase in its net income
B) A proportional decrease in its EBIT
C) A proportional increase in its EB

johnpaech 47 1 Reply

6 years ago

If Moon Corporation's gross margin declined, which of the following is TRUE?

If Moon Corporation's gross margin declined, which of the following is TRUE?
A) Its cost of goods sold increased.
B) Its cost of goods sold as a percent of sales increased.
C) Its sales increased.
D) Its net profit margin was

Memphic 36 1 Reply

6 years ago

The inventory days ratio measures:

The inventory days ratio measures:
A) the average length of time it takes a company to sell its inventory.
B) the average length of time it takes the company's suppliers to deliver its inventory.
C) the level of sales required to

johnpaech 58 1 Reply

6 years ago

Luther Corporation's cash ratio for 2009 is closest to:

Luther Corporation's cash ratio for 2009 is closest to:
A) 1.19
B) 10.6
C) 0.44
D) 0.41

Memphic 69 1 Reply

6 years ago

Luther Corporation's total sales for 2009 were $610.1, and gross profit was $109.0. Accounts ...

Luther Corporation's total sales for 2009 were $610.1, and gross profit was $109.0. Accounts payable days for 2009 is closest to:
A) 27.5
B) 5.71
C) 52.4
D) 63.8

Memphic 58 1 Reply

6 years ago

Luther Corporation's stock price is $39 per share and the company has 20 million shares ...

Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding. Its Market value Debt-Equity Ratio for 2009 is closest to:
A) 2.29
B) 0.37
C) 1.89
D) 0.31

johnpaech 85 1 Reply

6 years ago

Luther Corporation's stock price is $39 per share and the company has 20 million shares ...

Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding. Its Debt -Capital Ratio for 2009 is closest to:
A) 0.696
B) 0.37
C) 1.89
D) 0.654

Memphic 83 1 Reply

6 years ago

Luther Corporation's stock price is $39 per share and the company has 20 million shares ...

Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding. Its excess cash in 2009 is $23.4. Its Debt-to-Enterprise Value Ratio in 2009 is closest to:
A) 0.696
B) 0.37
C)

johnpaech 67 1 Reply

6 years ago

The Sarbanes-Oxley Act (SOX) was passed by Congress in 2002, in response to:

The Sarbanes-Oxley Act (SOX) was passed by Congress in 2002, in response to:
A) financial scandals, including WorldCom and Enron.
B) financial scandals, including Bernie Madoff and AIG.
C) financial scandals, including General Motors a

Memphic 74 1 Reply

6 years ago

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

The Sarbanes-Oxley Act (SOX) overhauled incentives and the independence in the auditing process by:
A) requiring the CEO and CFO to return bonuses or profits from the sale of stock that are later shown to be due to misstated financial reports.

Memphic 87 1 Reply

6 years ago

The Sarbanes-Oxley Act (SOX) forced companies to validate their internal financial control processes ...

The Sarbanes-Oxley Act (SOX) forced companies to validate their internal financial control processes by:
A) putting strict limits on the amount of non-audit fees (consulting or otherwise) that an accounting firm can earn from a firm that it audi

Memphic 79 1 Reply

6 years ago

The Dodd-Frank Wall Street Reform and Consumer Protection Act does the following:

The Dodd-Frank Wall Street Reform and Consumer Protection Act does the following:
A) Exempts firms with less than $75 million in publicly traded shares from some provisions of SOX.
B) Requires the SEC to study ways to reduce the cost of SO

Memphic 60 1 Reply

6 years ago

Which of the following statements regarding the valuing of costs and benefits is NOT correct?

Which of the following statements regarding the valuing of costs and benefits is NOT correct?
A) The first step in evaluating a project is to identify its costs and benefits.
B) In the absence of competitive markets, we can use one-sided pr

Memphic 48 1 Reply

6 years ago

Recycle America Inc. has the opportunity to trade 8000 pounds of plastic pellets made from recycled ...

Recycle America Inc. has the opportunity to trade 8000 pounds of plastic pellets made from recycled soda bottles for 5000 pounds of aluminum cans. If the current market price of scrap aluminum is $0.83 per pound and the current market price for

Memphic 64 1 Reply

6 years ago

Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for ...

Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for 10,000 Bbls of West Texas Intermediate (WTI) crude oil. Assuming you currently have 10,000 Bbls of WTI crude, the added benefit (cost) to you if

johnpaech 59 1 Reply

6 years ago

Assuming you just purchased 10,000 Bbls of WTI crude at the current market price, the added benefit ...

Assuming you just purchased 10,000 Bbls of WTI crude at the current market price, the added benefit (cost) to you if you were to refine this crude oil and sell the unleaded gasoline is closest to:
A) $730,600
B) $39,400
C) $770,000

Memphic 55 1 Reply

6 years ago

Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for ...

Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for 10,000 Bbls of West Texas Intermediate (WTI) crude oil. Assuming you just purchased 10,000 Bbls of WTI crude at the current market price, the add

Memphic 57 1 Reply

6 years ago

Assuming you currently have 10,000 Bbls of WTI crude, the added benefits to you if you were to sell ...

Assuming you currently have 10,000 Bbls of WTI crude, the added benefits to you if you were to sell the 10,000 Bbls of WTI crude and use the proceeds to purchase and refine ANS crude is closest to:
A) $730,600
B) $770,000
C) $40,800

Memphic 76 1 Reply

6 years ago

Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for ...

Memphic 51 1 Reply

6 years ago

By evaluating cost and benefits using competitive market prices, we can determine whether a decision ...

By evaluating cost and benefits using competitive market prices, we can determine whether a decision will make the firm and its investors wealthier. This central concept is called:
A) the Law of One Price.
B) the Present Value.
C

Memphic 37 1 Reply

6 years ago

A mining company is offering to trade you 7250 tons of low-grade copper ore for 5000 tons of ...

A mining company is offering to trade you 7250 tons of low-grade copper ore for 5000 tons of high-grade copper ore. Assuming you currently have 5000 tons of high-grade ore, what should you do?

Memphic 73 1 Reply

6 years ago

A company that manufactures copper piping is offering to trade you 5925 tons of low-grade copper ore ...

A company that manufactures copper piping is offering to trade you 5925 tons of low-grade copper ore for 4000 tons of high-grade copper ore. Assuming you currently have 4000 tons of high-grade ore, what are the total benefits and added benefits

johnpaech 69 1 Reply

6 years ago

Suppose you have $1000 today and the risk-free rate of interest (rf) is 3.5%. The equivalent value ...

Suppose you have $1000 today and the risk-free rate of interest (rf) is 3.5%. The equivalent value in one year is closest to:
A) $965.00 today.
B) $966.18 today.
C) $1000.00 today.
D) $1035.00 today.

Memphic 78 1 Reply

6 years ago

Which of the following statements is INCORRECT?

Which of the following statements is INCORRECT?
A) In general, money today is worth more than money in one year.
B) We define the risk-free interest rate, rf for a given period as the interest rate at which money can be borrowed or lent wit

johnpaech 62 1 Reply

6 years ago

If the risk-free rate of interest (rf) is 6%, then you should be indifferent between receiving $250 ...

If the risk-free rate of interest (rf) is 6%, then you should be indifferent between receiving $250 in one year or
A) $235.85 today.
B) $250.00 today.
C) $265.00 today.
D) None of the above

Memphic 57 1 Reply