Relationships computed from a firm's financial information and used for comparison purposes are called:
financial ratios.
M&A, Inc. maintains a constant debt-equity ratio of .4. The firm had net income for the year of $140,000
and paid $98,000 in dividend

Financial Statements Analysis
Apple Inc. (APPL)
Financial ratio analysis
The following financial ratio analysis has been completed based on Apple Inc. (APPL) fiscal year
2015 financial statements with year ending September 26, 2015. Annual reports were ch

2015
I
Short term solvency, liquidit ratios
Current Ratio
Current Assets
Current Liabilities
1.11
Quick Ratio
Current Assets - Inventory
Current Liabilities
1.08
Cash Ratio
Cash
Current Liabilities
26%
II
Long term solvency or financial leverage ratios
To

1
Equity Analysis
Report
By Shamara Rogers
Tuesday, October 06, 2015
Ticker: M (NYSE)
Industry: Retail
Recommendation: BUY
Price: $51.28 as of 10/6/2015
Target Price ONE Year: $67.76
Fiscal Year Ends Feb- Jan
Beta Value 1.28731
Recommendation:
Macys Stock

Short Term Solvency or Liquidity ratios
Liquidity Ratio
Ration Formula
Jan 31, 2015 Numbers
FY15 M Calculated
Ratio
Current Ratio
Current Assets/Current Liabilities
8,679,000/5,536,000
1.56X
Quick Ratio
Current Assets - Inventory/Current
Liabilities
8,679

10/282015 Quizzes - Global Financial Mgmt n FIR 7155 M50 - 20158089744 - The University of Memphis
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Long Term Financing
Question 1 0.5 / 0.5 points
Megan owns 100 shares of ALPHA stock. Which one of the following

For calculating the sales amount for the polo shirts project, we will need to consider
erosion, which is a side effect of a new project. Erosion is the cash flow of a new
project that come at the expense of existing projects.
Looking at the figures we see

According to the DuPont Identity equation,
Return on Equity (ROE) = Profit Margin * Total Asset Turnover * Equity Multiplier
Return on Equity (ROE) = Net Income / Total Equity
= $51,700 / $639,400
= 0.081
Total Asset Turnover = 1.4
Equity Multiplier = Tot

Operating Cash Flow = Earnings before interest & taxes (EBIT) + Depreciation
Taxes
Income Statement
Net Sales
Costs
Depreciation
Earnings before interest and taxes
Interest paid
Taxable Income
Taxes
Net Income
Therefore,
Operating Cash Flow = 27,800 + 10

Over the last four years, the stock of Stephensen's Motors has had an arithmetic average return of
8.5 percent. Three of those four years produced returns of 8 percent, 19 percent, and 13 percent.
What is the geometric average return for this 4-year perio

Written: Oct 5, 2015 9:56 AM - Oct 5, 2015 11:13 AM
Submission View
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Quiz on risk and return
Question 1 y 0 / 0.5 points
Standard deviation measures _ risk while beta measures _ risk.
1) systematic; unsystematic
X

The tax shield approach to computing the operating cash flow, given a tax-paying firm:
1) ignores both interest expense and taxes.
2) separates cash inflows from cash outflows.
considers the changes in net working capital resulting from a new
project.
is

I
Current Ratio
Short term solvency, liquidit ratios
Current Assets
Current Liabilities
Quick Ratio
Current Assets - Inventory
Current Liabilities
Cash Ratio
Cash
Current Liabilities
II
Total Debt Ratio
Debt-Equity Ratio
Times Interest Earned Ratio (TIE)