# Quiz 1 for corporate finance

Question 1
12.5 pts

Which ratio below would give the best sense of the overall efficiency of the firm?

 Fixed Asset Turnover

 Total Asset Turnover (TATO)

 Total Debt to Total Assets

 Current Ratio

 Inventory Turnover

Question 2
12.5 pts

If the return on assets for a firm is 14.5% and the firm is financed with 50% debt and 50% equity, what is the return on equity?

 7.25%

 not enough information

 29.0%

 19.5%

Question 3
12.5 pts

If the “debt to equity” ratio is 2.2, what is the “debt to assets” ratio?

 0.6875

 2.2

 3.2

Question 4
12.5 pts

From Problem 2.15:

Cash  47,250

Short term investments 3,800

Accounts Receivable 283,500

Inventories 141,750

Total Current Assets 476,300

Total Assets  807,500

What is the common size number for Inventories?

 14.175

 not enough information

 17.56

 80.71

Question 5
12.5 pts

If inventories grew from 135,000 to 141,750 over the 2009 to 2010 years, what was the percentage increase in inventories?

 1.05%

 not enough information

 105%

 5.0%

Question 6
12.5 pts

What is the Days Sales Outstanding for a firm with the following information (assume 365 day year):

Sales: 900

COGS: 500

Depreciation:  100

Interest:  50

Inventory:  100

Accounts Receivable:  150

 2.47 days

 60.83 days

 40.56 days

 Not enough information

 0.167 days

Question 7
12.5 pts

What is inventory turnover for a firm with the following information.  Use the formula with COGS instead of Sales:

Sales: 900

COGS: 500

Depreciation:  100

Interest:  50

Inventory:  100

Accounts Receivable:  150

 3

 5

 6

 4

Question 8
12.5 pts

What are the three “levers” for Return on Equity?  That is, what three ratios can be used to calculate return on equity?

 profit margin, total asset turnover and equity multiplier

 profit margin, debt ratio and return on assets

 inventory turnover, debt to equity and leverage

 profitability, efficiency and market value ratios

##### Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount! Use Discount Code "Newclient" for a 15% Discount!NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you. 