The return on equity, Company ABC has a market

The return on equity

Assignment Help Financial Management

Reference no: EM131932156

1. Company ABC has a market capitalization of $750 million, Book Value (Shareholder’s Equity) Per share of $15 and net income of $25 million. If the stock is currently trading at $30. The Return on Equity is:

A. 3.3%

B. 6.7%

C. 9.3%

D. 50.0%

2. The current ratio of Company X is 3.0 times. Company X has working capital of $20,000. Total Current Assets for Company X are:

A. $6,667

B. $10,000

C. $30,000

D. $60,000

3. Company X reports $200,000 in sales of Widgets in 2016. The Costs of Goods sold for these Widgets is $90,000. All other operating expenses (SG&A, R&D, Depreciation, Other, etc.) are $50,000. Which of the following is the correct representation of the profitability ratios:

A. Gross Profit Margin 45%, Operating Margin 30%.

B. Gross Profit Margin 55%, Operating Margin 30%.

C. ross Profit Margin 45%, Operating Margin 20%.

D. ross Profit Margin 55%, Operating Margin 20%.

Reference no: EM131932156

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