Governments become very concerned with their exchange rates because they directly affect the: A) Foreign economy B) Demand of currency C) Domestic economy D) Supply of currency ANSWER C
Date: September 19th, 2020
A company has a collection period of 37.5 days, an inventory period of 93.4 days, and a payables turnover of 48.12. Calculate the cash conversion cycle. A) 82.78 B) 130.9 C) 123.31 D) 85.62 E) 120.31 ANSWER C
Date: September 19th, 2020
What is the return on equity if net income was $55,000, total assets are $115,000, EBIT was $100,000, and equity is $75,000? A) 47.8% B) 63.1% C) 73.3% D) 87.0% E) 55.0% ANSWER C
Date: September 19th, 2020
Firm X has an accounts payable period of 38 and a costs of goods sold of $7,500. Calculate the Average payables. A) 780.44 B) 197.37 C) 835.64 D) 217.26 E) 694.61 ANSWER A
Date: September 19th, 2020
The Cash Store Co just repurchased 11.875 million shares at a price of $14. The stock was trading at a price of $16 prior to the repurchase, but a market correction gave the company an opportunity to repurchase at a lower price. There were 100 million shares outstanding prior to the repurchase. The stock is […]
Date: September 19th, 2020
The four-digit codes used by the government to classify firms into industries are known as A) ratio standards. B) EIC codes. C) USIC codes. D) financial benchmarks. E) SIC codes. ANSWER E
Date: September 19th, 2020
Each of the following is a ratio category EXCEPT A) productivity ratios. B) market ratios. C) liquidity ratios. D) financing ratios. E) activity ratios. ANSWER A
Date: September 19th, 2020
When evaluating a new project, the firm should consider all of the following factors EXCEPT A) previous expenditures associated with a market testing. B) changes in working capital attributable to the project. C) the current market value of any equipment to be replaced. D) the resulting difference in depreciation expense if the project involves replacement. […]
Date: September 19th, 2020
Laurie wants to buy a used sports car. She is looking at three: (1 ) a 3-year old Porsche 911 Turbo Cabriolet; (2 ) a 4-year old Ferrari F430; or (3 ) a 4-year old Lamborghini Gallardo. The purchase price, annual operating costs and resale value for each car is given in the table, below. […]
Date: September 19th, 2020
The time the vendor gives us to pay is: A) Cash conversion cycle B) Receivables turnover C) Accounts payable period D) Operating period ANSWER C
Date: September 19th, 2020
