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- d. Calculate the Efficiency ratio which includes the sales to total assets ratio, operating return on assets, return on assets, ROA Model, return on equity, and ROE ModelQuick assets divided by current liabilities is the: Select one: a.Current ratio. b.Working capital ratio. c.Quick asset turnover ratio. d.Acid-test ratio.The ratio sales to working capital is a measure ofa. Collectability.b. Operational leverage.c. Liquidity.d. Financial Leverage
- Weighted average cost of capital is the combined cost of capital using a capital mix. The capital mix should be measured in terms of: Group of answer choices a. Market value of debt and equity b. Carrying value of debt and equity c. Carrying value of total assets d. Contribution margin ratioWhich of the following is NOT a profitability ratio? Select one:a. Return on Equityb. Net Profit Marginc. Return on Assetsd. Average Collection PeriodWhich one of the following formulas is correct? O i) Profit margin = EBIT / Sales ii) ROA = ROE / Equity multiplier %3D O ii) Capital intensity ratio = 1 / Return on assets O iv) Quick ratio = Cash / Current liabilities
- A. Which of the following is most closely associated with the cost of using assets? a. Asset utilization b. Sales revenue c. Proportion of debt and equity d. Average price B. Which of the following is most closely associated with the return on management’s use of assets? a. Cost of capital b. Mix of equity types c. Prime lending rate d. # of products soldWeighted average cost of capital is the combined cost of capital using a capital mix. The capital mix should be measured in terms of: Group of answer choices Contribution margin ratio Market value of debt and equity Carrying value of total assets Carrying value of debt and equityDefine (a) return on investment, (b) risk, (c) financial flexibility, (d) liquidity, and (e) operating capability.
- Carrying amounts in a GAAP balance sheet are measured using all the following except: Multiple Choice historical cost. net realizable value. discounted present value. projected ROI._______ ratios are used to measure the speed in which various assets are converted into sales or cash. A Debt (aka Leverage) B Efficiency (aka working capital) C Profitability C CoverageIn a DuPont analysis, what are the components of return on assets?a. Net Profit Margin Ratio and Debt Ratiob. Net Profit Margin Ratio and Leverage Ratioc. Net Profit Margin Ratio and Asset Turnover Ratiod. Asset Turnover Ratio and Leverage Ratio
