BUSN 5200 Week 4 Quiz | Webster University
- Webster University / BUSN 5200
- 08 Jul 2021
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BUSN 5200 Week 4 Quiz | Webster University
Question 1
Which one is NOT a Liquidity ratio?
Quick Ratio
Cash Ratio
Profitability Ratio
Current Ratio
Question 2
Which of the following would not improve the current ratio?
Borrow short term to finance additional fixed assets.
Issue long-term debt to buy inventory.
Sell common stock to reduce current liabilities.
Sell fixed assets to reduce accounts payable.
Question 3
Which of the following statements is most accurate?
Coverage ratios also shed light on the "liquidity" of these current ratios
Receivable and inventory-based activity ratios also shed light on the "liquidity" of these current assets
Receivable and inventory-based activity ratios also shed light on the firm's use of financial leverage
Liquidity ratios also shed light on the firm's use of financial leverage
Question 4
A company can improve (lower) its debt-to-total asset ratio by doing which of the following?
Borrow more
Shift short-term to long-term debt
Shift long-term to short-term debt
Sell common stock
Question 5
The Dupont system
Links profitability and efficiency ratios
Considers that ROA and ROE can be thought of as being comprised of several ratios
Provides information about the interaction of ratios
All of the above
Question 6
How does the Du Pont formula help identify the determinants of the firm's return on its assets and equity?
The formula states that the return on equity is the product of the firm's leverage ratio, asset turnover, operating profit margin, and debt burden
The formula states that the return on assets is the product of the firm's asset turnover and operating profit margin
Neither of the above is correct
Both of the above are correct
Question 7
Which of the following is most likely to result in a higher P/E ratio for a firm, other things equal?
Lower growth rate in dividends.
Reduction in the stock's required rate of return.
Lower dividend yield.
Lower stock price.
Question 8
The top part of Bobbie's Inc.'s 201x balance sheet is listed as follows (in millions of dollars).
Current assets: C urrent liabilities
Cash and marketable securities $ .5 Accrued wages and taxes $ 6
Accounts receivable 15 Accounts payable 10
Inventory 95 Notes payable 50
Total $115 Total $ 66
What are Bobbie's Inc.'s current ratio, quick ratio, and cash ratio for 201x?
1.74242, 0.30303, 0.07576
7.1875, 1.25, 0.3125
1.43939, 0.30303, 0.07576
19.16667, 3.33333, 0.83333
Question 9
Bobbette's Company reported sales for 201x of $53 million. Bobbette's Company listed $24 million of inventory on its balance sheet. How many times per year did Bobbette's Company inventory turn over? (Answer to 1 decimal place, e.g. x.x or 1.2)
Question 10
If net income available to stockholders is US$167 and total assets are US$1546 and total liabilities are $279 then return on total assets would be. ? %... (Express answer as a percentage to 2 decimal places, with no % sign needed, e.g. x.xx or 1.23)
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