This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: $30.60 What is the firm's inventory turnover? A) 4.41 B) 4.97 C) 4.55 D) 4.69 E) 4.83 Points Earned: 5.0/5.0 Correct Answer(s): C 14. Aaron Aviation recently reported the following information: Net income $500,000 ROA 10% Interest expense $200,000 The company's average tax rate is 40%. What is the company's basic earning power (BEP)? A) 20.67% B) 22.50% C) 14.12% D) 16.67% E) 17.33% Points Earned: 0.0/5.0 Correct Answer(s): A 15. Last year Bell Corp had $200,000 of assets, $300,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 40%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets to $150,000. Sales, costs, and net income would not be affected, and the firm would maintain the 40% debt ratio. By how much would the reduction in assets improve the ROE? A) 5.26% B) 4.66% C) 5.86% D) 4.96% E) 5.56% Points Earned: 0.0/5.0 Correct Answer(s): E...
View Full Document