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1.
Frederico’s has a profit margin of 6 percent, a return on assets of 8 percent, and an
equity multiplier of 1.4. What is the return on equity?
a.
6.7 percent
b.
8.4 percent
c.
11.2 percent
d.
14.6 percent
e.
19.6 percent
2.
A firm has a return on equity of 15 percent. The debtequity ratio is 50 percent. The
total asset turnover is 1.25 and the profit margin is 8 percent. The total equity is
$3,200. What is the amount of the net income?
a.
$480
b.
$500
c.
$540
d.
$600
e.
$620
3.
Patti’s has net income of $1,800, a priceearnings ratio of 12, and earnings per share of
$1.20. How many shares of stock are outstanding?
a.
1,200
b.
1,400
c.
1,500
d.
1,600
e.
1,800
4.
Lee Sun’s has sales of $3,000, total assets of $2,500, and a profit margin of 5 percent.
The firm has a total debt ratio of 40 percent. What is the return on equity?
a.
6 percent
b.
8 percent
c.
10 percent
d.
12 percent
e.
15 percent
5.
A firm has net working capital of $400, net fixed assets of $2,400, sales of $6,000, and
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This note was uploaded on 11/18/2010 for the course PHYSICS phys111 taught by Professor Singh during the Spring '10 term at Montclair.
 Spring '10
 singh
 Physics

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