Homework Answers
option D: Investors sentiments to the firm;
P/E ratio and P/BV ratios shows how much times extra the market is valuing the company based on its current earnings. Higher P/E ratio or P/BV ratio shows that market is expecting the company to perform better in future years and bring higher cashflows.
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QUESTION 7 The PE ratio and market-to-book ratio are indicators of O profitability of the firm...
QUESTION 24 The debt to assets ratio is a A. liquidity ratio O B. profitability ratio...
QUESTION 24 The debt to assets ratio is a A. liquidity ratio O B. profitability ratio O C solvency ratio O D. None of the answer choices is correct QUESTION 25 Free cash flow provides an indication of a company's ability to A. generate cash to invest in new capital expenditures @ B. generate cash to pay dividends C. generate cash to invest in new capital expenditures and to pay dividends. D.generate net income QUESTION 26 Which of the following...
QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O...
QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O B. liquidity and profitability OC. liquidity and solvency OD. consistency and solvency QUESTION 24 The debt to assets ratio is a O A. liquidity ratio O B. profitability ratio OC. solvency ratio D. None of the answer choices is correct A measure of profitability is the O A. earnings per share OB. debt to assets ratio O C. current ratio O D.working capital
QUESTION 12: The higher the times interest earned, the better. True False QUESTION 13: The market...
QUESTION 12: The higher the times interest earned, the better. True False QUESTION 13: The market to book ratio and price earnings ratio indicate the firm's liquidity the firm's ability to quickly liquidate investments and turn them into cash the firm's efficiency in generating funding by selling their common stock market sentiment toward the firm
Question 26 (1 point) Calculate the market to book ratio of a firm with a current...
Question 26 (1 point) Calculate the market to book ratio of a firm with a current share price of $31.12, a book value of equity of $3,000,000,000, and 99,000,000 shares outstanding. Round your answer to four decimal places. Your Answer D View hint for Question 26 Question 27 (1 point) If a company's profit margin is 6% and its total asset turnover is 2.5, what is its return on assets (ROA)? (Ehter your answers as a decimal rounded to 4...
3. Problem 7-03 (Market-Book Ratio) eBook Market/Book Ratio Winston Watch's stock price is $80 per share....
3. Problem 7-03 (Market-Book Ratio) eBook Market/Book Ratio Winston Watch's stock price is $80 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 450 million shares of common stock outstanding. What is Winston's market/book ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Question 1 (1 point) Why is the market value of equity (stock) in a firm with...
Question 1 (1 point) Why is the market value of equity (stock) in a firm with great future opportunities more than the book value of its equity? Choose all that are correct. Investors expect the firm to generate cash for equity holders that far exceed the purchase price of the firm's assets financed by equity. The resale (liquidation) values of assets (like an assembly plant) are greater than the market value of assets U The firm's opportunities are expected to...
quant analysis help What is the operating cash flow for 2016? Total Revenues Cost of Sales...
quant analysis help
What is the operating cash flow for 2016? Total Revenues Cost of Sales Gross Profit SGA Expenses Depreciation Earnings Before Interest and Taxes Interest Taxable income Taxes 21,000 10,000 11,000 6,000 1,500 3,500 500 3,000 1.000 Which of the following is FALSE? One way to help lessen the agency problem is to align the interests of management with those of shareholders by using stock or stock options in management compensation. The potential of replacement through a proxy...
Question 2. Chap 7 Discussion Question 5 (p.252) What types of companies have: a. a high P/E ratio and a low market-to-...
Question 2. Chap 7 Discussion Question 5 (p.252) What types of companies have: a. a high P/E ratio and a low market-to-book ratio? b. a high P/E ratio and a high market-to-book ratio? c. a low P/E ratio and a high market-to-book ratio? d. a low P/E ratio and a low market-to-book ratio?
Asset management ratios are used to measure how effectively a firm manages its assets, by relating...
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio Consider the following case: Polk Software Inc....
Activity 10 TEST YOUR UNDERSTANDING A Review of Rata Analysis ORACLE CORPORATION endar 1.79 (P/L/S) En...
Activity 10 TEST YOUR UNDERSTANDING A Review of Rata Analysis ORACLE CORPORATION endar 1.79 (P/L/S) En the fiscal Current ratio 1299 1.74 1.70 (PLUS) Det to 0.491 0.492 0.488 (P/L/S) Reum on sales 0.15 0.11 0.14 (PL/S) Return on assets 0.18 0.14 0.18 Sour cure, he, Compact SEC. 2000 1. In the left-hand margin above, circle whether the ratio measures (Profitability, short-term (Liquidity - the ability to pay current debt, or long-term (Solvency - the ability to pay long-term det...
QUESTION 24 The debt to assets ratio is a A. liquidity ratio O B. profitability ratio O C solvency ratio O D. None of the answer choices is correct QUESTION 25 Free cash flow provides an indication of a company's ability to A. generate cash to invest in new capital expenditures @ B. generate cash to pay dividends C. generate cash to invest in new capital expenditures and to pay dividends. D.generate net income QUESTION 26 Which of the following...
QUESTION 23 Long-term creditors are usually most interested in evaluating O A. consistency and profitability O B. liquidity and profitability OC. liquidity and solvency OD. consistency and solvency QUESTION 24 The debt to assets ratio is a O A. liquidity ratio O B. profitability ratio OC. solvency ratio D. None of the answer choices is correct A measure of profitability is the O A. earnings per share OB. debt to assets ratio O C. current ratio O D.working capital
Question 26 (1 point) Calculate the market to book ratio of a firm with a current share price of $31.12, a book value of equity of $3,000,000,000, and 99,000,000 shares outstanding. Round your answer to four decimal places. Your Answer D View hint for Question 26 Question 27 (1 point) If a company's profit margin is 6% and its total asset turnover is 2.5, what is its return on assets (ROA)? (Ehter your answers as a decimal rounded to 4...
3. Problem 7-03 (Market-Book Ratio) eBook Market/Book Ratio Winston Watch's stock price is $80 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 450 million shares of common stock outstanding. What is Winston's market/book ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Question 1 (1 point) Why is the market value of equity (stock) in a firm with great future opportunities more than the book value of its equity? Choose all that are correct. Investors expect the firm to generate cash for equity holders that far exceed the purchase price of the firm's assets financed by equity. The resale (liquidation) values of assets (like an assembly plant) are greater than the market value of assets U The firm's opportunities are expected to...
quant analysis help
What is the operating cash flow for 2016? Total Revenues Cost of Sales Gross Profit SGA Expenses Depreciation Earnings Before Interest and Taxes Interest Taxable income Taxes 21,000 10,000 11,000 6,000 1,500 3,500 500 3,000 1.000 Which of the following is FALSE? One way to help lessen the agency problem is to align the interests of management with those of shareholders by using stock or stock options in management compensation. The potential of replacement through a proxy...
Question 2. Chap 7 Discussion Question 5 (p.252) What types of companies have: a. a high P/E ratio and a low market-to-book ratio? b. a high P/E ratio and a high market-to-book ratio? c. a low P/E ratio and a high market-to-book ratio? d. a low P/E ratio and a low market-to-book ratio?
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio Consider the following case: Polk Software Inc....
Activity 10 TEST YOUR UNDERSTANDING A Review of Rata Analysis ORACLE CORPORATION endar 1.79 (P/L/S) En the fiscal Current ratio 1299 1.74 1.70 (PLUS) Det to 0.491 0.492 0.488 (P/L/S) Reum on sales 0.15 0.11 0.14 (PL/S) Return on assets 0.18 0.14 0.18 Sour cure, he, Compact SEC. 2000 1. In the left-hand margin above, circle whether the ratio measures (Profitability, short-term (Liquidity - the ability to pay current debt, or long-term (Solvency - the ability to pay long-term det...
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