PracticeExam3 - 1 Which one of the following statements related to liquidity is correct I Liquid assets tend to earn a high rate of return II

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1. Which one of the following statements related to liquidity is correct? I. Liquid assets tend to earn a high rate of return. II. Liquid assets are defined as assets that can be sold quickly regardless of the price obtained. III. Current assets are more liquid than fixed assets. IV. Liquid assets earn a lower return compared to fixed assets. a) I and II only. b) II and III only. c) I, II and III only. d) II and IV only. e) III and IV only. 2. What is the average tax rate for a firm with a taxable income of $309,750? a) 33.6% b) 33.3% c) 32.9% d) 34.2% e) 35.0% Use the financial statements provide on page 6 to answer questions 3 – 13. Use end of the year figures for balance sheet items for all questions. 3. What is the Galaxy Interior’s payout ratio for 2008? a) 48% b) 52% c) 58% d) 35% e) 100% 1
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4. What is the change in the net working capital from 2007 to 2008 (include ALL current liabilities)? a) -$1,194 b) $1,306 c) $1,887 d) $4,780 e) $5,172 5. What is the amount of the net capital spending for 2008? a) -$382 b) $1,229 c) $1,804 d) $2,375 e) $2,516 6. What is the cash flow from assets for 2008? a) $1,732
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This note was uploaded on 01/24/2011 for the course FIN 311 taught by Professor Layish during the Fall '08 term at Binghamton University.

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PracticeExam3 - 1 Which one of the following statements related to liquidity is correct I Liquid assets tend to earn a high rate of return II

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