The interest coverage ratio is equal to: A) EBIT/interest. B) interest/EBIT. C) (debt + equity)/EBIT. D) EBIT * interest. ANSWER A
Date: September 19th, 2020
Based on the information in Table 3-1, the change in cash for 2010 is A) $4,000. B) $4,950. C) $5,500. D) $5,800. ANSWER D
Date: September 19th, 2020
Based on the information in Table 3-1, calculate the after-tax cash flow from operations for 2008 (no assets were disposed of during the year, and there was no change in interest payable or taxes payable). A) $1,450 B) $5,500 C) $4,300 D) $6,250 ANSWER C
Date: September 19th, 2020
Based on the information in Table 4-1, the inventory turnover ratio is A) 1.3 times. B) 2.5 times. C) 2.0 times. D) 2.9 times. ANSWER C
Date: September 19th, 2020
Which of the following would NOT normally be considered a “flotation cost”? A) printing and engraving expenses B) dividends C) legal fees D) underwriter’s spread ANSWER B
Date: September 19th, 2020
A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount each year into an investment account that earns 7.5% interest per year, starting on the day your child is born. How much would you need to invest each year […]
Date: September 19th, 2020
XYZ, Inc. would suffer serious financial consequences if either of its two major customers were shut down and could not purchase XYZ products. Which of the following types of consequential loss protection would provide protection against this exposure? A) leasehold interest B) extra expense C) marine insurance D) business income from dependent properties […]
Date: September 19th, 2020
The beta of a T-bill is zero. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The ability to identify the key industry drivers of success is a fundamental concept that a nonfinancial manager should understand in order to: A) better assess the current environment in which the firm operates. B) better assess future financing requirements. C) better understand the role of capital markets in raising long-term funds. D) better measure […]
Date: September 19th, 2020
A cash budget is often more valuable as a LONG-term rather than a SHORT-TERM financial forecasting vehicle. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
