FINC 322 - Exam #1 Practice Problems

# FINC 322 - Exam #1 Practice Problems - \$0.87 How many...

This preview shows page 1. Sign up to view the full content.

FINC 322 Practice Problems for Exam 1 1. A firm has a debt-equity ratio of 0.42. What is the total debt ratio? A. 0.30, B. 0.36, C. 0.44, D. 1.58, E. 2.38 2. Reliable Cars has sales of \$807,200, total assets of \$1,105,100, and a profit margin of 9.68 percent. The firm has a total debt ratio of 78 percent. What is the return on equity? 3. A firm has total assets of \$311,770 and net fixed assets of \$167,532. The average daily operating costs are \$2,980. What is the value of the interval measure? 4. Big Guy Subs has net income of \$150,980, a price-earnings ratio of 12.8, and earnings per share of
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: \$0.87. How many shares of stock are outstanding? A. 13,558 B. 14,407 C. 165,523 D. 171,000 E. 173,540 5. A firm has a debt-total asset ratio of 74 percent and a return on total assets of 13 percent. What is the return on equity? A. 26 percent B. 50 percent C. 65 percent D. 84 percent E. 135 percent 6. 18. The Dockside Inn has net income for the most recent year of \$8,450. The tax rate was 38 percent. The firm paid \$1,300 in total interest expense and deducted \$1,900 in depreciation expense. What was the cash coverage ratio for the year? A. 10.48 times B. 11.48 times C. 12.39 times D. 12.95 times E. 13.07 times...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern