Exam 2 Spring 2007 Answer Key

Exam 2 Spring 2007 Answer Key - Version C – 55 Questions...

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Version C – 55 Questions Boston University School of Management SM 299 Spring 2007 Examination 2 Before beginning the examination please provide the information requested by the Student Enrollment Sheet: 1. In the section for I.D. Number please make the first two numbers correspond to the number for your section: B1 01 B2 02 B3 03 B4 04 B5 05 B6 06 Follow your section number with the eight digits of your BU ID number. For example, a student in section B3 would make the first two numbers 03. If her ID number is 82829595, she would fill in the ten spaces for ID Number with 0382829595. 2. A phone number where you can be reached today in the event that there is some problem with your exam’s score sheet. 3. Your name. 4. The version of the exam you are taking (A, B, C, or D), found in the upper left corner of all exam pages (except for the formulas page). Place this information in Test Form section. Version C I confirm that my work on this examination is consistent with the Boston University School of Management Academic Conduct Code. I have neither given nor received assistance on this examination. _______________________________________ Signature _______________________________________ Please print your name Version C Version C Version C Page 1 of 14 Version C – 55 Questions
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Version C – 55 Questions Ratios and Other Formulas DuPont Identity – ROE = ROS x Asset Turnover x Leverage = ROA x Leverage Equity Multiplier = Total Assets / Total Equity Leverage = Total Assets / Total Equity Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Current Assets - Inventory) / Current Liabilities Working Capital = Current Assets - Current Liabilities Degree of Operating Leverage = % Change in EBIT / % Change in Revenues Degree of Financial Leverage = % Change in Net Income / % Change in EBIT Degree of Total Leverage = % Change in Net Income / % Change in Revenues = DOL x DFL Days Receivable = (Year end Accounts Receivable / Year’s Sales) x 365 Days Inventory = (Year end Inventory / Year’s Cost of Goods Sold) x 365 Days Accounts Payable = (Year end Accounts Payable / Year’s Cost of Goods Sold) x 365 Asset Turnover = Yearly Sales / Year end Total Assets Return on Assets (ROA) = Net Income (for one period) / Average Assets Return on Sales (ROS) = Net Income (for one period) / Total Revenue Return on Equity (ROE) = Net Income (for one period) / Average Equity Operating Margin = EBIT (for one year) / Total Revenue (EBIT = Earnings Before Interest and Taxes) Asset Turnover = Total Sales / Total Assets Present Value = Future Value N / (1+ d ) N Where: N = Number of years d = (discount rate expressed in % / year)/ 100 (Example: if the discount rate is 10%, d = 0.10) Future Value N = Future Value for year N Breakeven at the "aggregate" level = Fixed Costs / % Gross Margin Breakeven at the detailed level = Fixed Costs / (Unit Price - Unit Cost) = Fixed Costs / Unit Contribution PE = Price to earnings ratio = Share price / Earnings per share
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Exam 2 Spring 2007 Answer Key - Version C – 55 Questions...

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