- Economic theory teaches that differences in market returns must relate to difference in:
a. book value
b. perceived risk
c. price-earnings ratio
d. bankruptcy risk
b. perceived risk
- Market equity beta measures the co-variability of a firm's returns with the returns of:
a. all industry competitors in the market
b. risk free securities
c. all securities in the market
d. all firms of comparable market value
c. all securities in the market
- The johnson company has a current ration of 1.45. The company has just sold $600k worth of merchandise on credit. What will the current ratio be after the sales on credit?
Greater than 1.45
- One common problem with the current ratio is that it is susceptible to window dressing. If prior to the end of the accounting period Saxon Company has a current ratio of 1.5 and management wishes to boost its current ratio it may decide to:
a. pay off a/p prior to year end
b. purchase more inventory on account
c. purchase short term investments with cash
d. purchase more inventory with cash
a. pay off a/p prior to year end
- What is mobile's current ratio in 2010?
a. 1.07
b. 1.45
c. 1
d. .69
b. 1.45
- Mobile's quick ratio changed by what percentage from 2009 to 2010?
a. 30%
b. 107%
c. 25%
d. 82%
a. 30%
- Mobile's operating cash flow to current liabilities ratio in 2010 was
a. .70
b. 1.39
c. 1.00
d. .72
d. .72
- Mobile's days receivables outstanding at the end of 2010 was
a. 43.20 days
b. 40.50 days
c. 45.25 days
d. 8.50 days
a. 43.20 days
- Mobile's days AP outstanding at the end of 2010 is:
a. 7.53 days
b. 48.09 days
c. 45.51 days
d. 50 days
b. 48.09 days
- Days of other financing required by Mobile at the end of 2010 would be
a. 54.36 days
b. 75.36 days
c. 102.94 days
d. 5.27 days
a. 54.36 days
