Reference no: EM131825422
1. Trail’s End has sales of $359,000, a tax rate of 36 percent, and a profit margin of 4.4 percent. What is the return on equity if the firm has total equity of $197,000?
9.54 percent
8.02 percent
11.94 percent
5.13 percent
2. Welcome Inn has total equity of $463,000 and a debt-equity ratio of .46. What is the firm’s equity multiplier?
1.32
1.46
2.17
.54
3. The debt-equity ratio is equal to which one of the following?
(Long-term debt + Total equity) / Total equity
Equity multiplier + 1
Equity multiplier – 1
Long-term debt / Total equity
4. Arlene’s Outlet has sales of $374,000. Costs of goods sold equal 63 percent of sales. The store has $38,250 in inventory. On average, how long does inventory set on the shelf before it is sold?
37.33 days
59.25 days
39.67 days
66.33 days
5. Glotfelty & Sons has sales of $511,000, a profit margin of 4.8 percent, and 37,000 shares of stock outstanding. What is the price-earnings ratio if the stock sells for $14.00 a share?
21.12
20.79
22.29
21.45
6. Which one of the following is a long-term solvency ratio?
total asset turnover
price-sales ratio
interval measure
equity multiplier
7. Jennings Lumber has total sales of $569,000, total equity of $369,000, and total assets of $635,000. What is the return on equity if the firm’s profit margin is 6.2 percent?
9.56 percent
12.91 percent
11.32 percent
14.93 percent