Asset efficiency ratios for Fischer, Inc. are given in the table below. Based on this information, Fischer, Inc.’s fixed asset turnover ratio is likely to be ________. Fischer, Inc. Peer Group Total Asset Turnover 1.58X 2.05X Accounts Receivable Turnover 17.55X 14.35X Inventory Turnover 6.34X 5.22X Fixed Asset Turnover ????? 3.50X A) negative B) less than […]
Which of the following statements is (are) true regarding renters insurance? I. Renters insurance is needed if you rent a house, but is not needed if you rent an apartment. II. The ISO renter’s policy provides open perils (“all-risks”) coverage on the insured’s personal property. A) I only B) II only C) both I and […]
Which homeowners policy is designed for the tenants of a rented premises? A) Homeowners 2 B) Homeowners 4 C) Homeowners 6 D) Homeowners 8 ANSWER Answer: B
Managers often begin with an estimate of ________ when beginning to develop pro forma financial statements. A) net income B) sales C) assets D) equity ANSWER B
Which of the following statements about eligibility requirements for homeowners insurance is (are) true? I. A contract can be written on a twenty-unit apartment complex as long as the tenants are families. II. Separate forms are available for renters and condominium owners. A) I only B) II only C) both I and II D) neither […]
Ben lives in a state that has a no-fault auto insurance law. Another motorist failed to yield the right of way, and hit his car. Ben filed a claim with his own insurer. He also contacted a lawyer to discuss suing the other driver. The lawyer told Ben that while lawsuits resulting from auto accidents […]
Your parents are complaining about the price of items today compared to what they cost years ago. If an automobile that cost $12,000 in 1980 costs $40,000 in 2010, calculate the annual growth rate in the automobile’s price. What will be an ideal response? ANSWER 4.26%, based on PV = $12,000; FV = […]
Some states have enacted laws which prohibit uninsured drivers from suing a negligent driver for noneconomic damages, such as pain and suffering. These laws are called A) comparative negligence laws. B) “no pay, no play” laws. C) financial responsibility laws. D) unsatisfied judgment laws. ANSWER Answer: B
Stock W has an expected return of 12% with a standard deviation of 8%. If returns are normally distributed, then approximately two-thirds of the time the return on stock W will be A) between 4% and 20%. B) between -4% and 28%. C) between 12% and 20%. D) between 8% and 12%. ANSWER […]
In chapter 6, Projecting Financial Requirements and Managing Growth, the author focuses on three critical questions to examine the firm’s financial future. Which of the following questions is NOT addressed by the author in this chapter? A) How much and what type of financing will be required to meet goals and expectations? B) How do […]
