ch4a - Question 1 (1 point) Pace Corp.'s assets are...

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Question 1 (1 point) Pace Corp.'s assets are $625,000, and its total debt outstanding is $185,000. The new CFO wants to employ a debt ratio of 55%. How much debt must the company add or subtract to achieve the target debt ratio? Student response: Student Response Answer Choices a. $158,750 b. $166,688 c. $175,022 d. $183,773 e. $192,962 Score:1 / 1 Question 2 (1 point) Last year Central Chemicals had sales of $205,000, assets of $127,500, a profit margin of 5.3%, and an equity multiplier of 1.2. The CFO believes that the company could reduce its assets by $21,000 without affecting either sales or costs. Had it reduced its assets in this amount, and had the debt ratio, sales, and costs remained constant, by how much would the ROE have changed? Student response: Student Response Answer Choices a. 1.81% b. 2.02% c. 2.22% d. 2.44% e. 2.68% Score:1 / 1 Question 3 (1 point) A firm's new president wants to strengthen the company's financial position. Which of the following actions would make it financially stronger? Student response: Student Response Answer Choices
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a. Increase accounts receivable while holding sales constant. b. Increase EBIT while holding sales constant. c. Increase accounts payable while holding sales constant. d. Increase notes payable while holding sales constant. e. Increase inventories while holding sales constant. Score:1 / 1 Question 4 (1 point) Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio? Student response:
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ch4a - Question 1 (1 point) Pace Corp.'s assets are...

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