FINC 322 - Exam #1 Practice Problems Answers

FINC 322 Exam#1 - $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

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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? A. 13.09 percent B. 16.67 percent C. 17.68 percent D. 28.56 percent E. 32.14 percent 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? A. 31.47 days B. 48.40 days C. 56.22 days D. 68.05 days E. 104.62 days 4. Big Guy Subs has net income of $150,980, a price-earnings ratio of 12.8, and earnings per share of
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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...
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This note was uploaded on 12/13/2011 for the course FINC 322 taught by Professor Nazar during the Fall '11 term at Ferris State.

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