Question 1: The Jamestown Group has equity of $421,000, sales of $792,000, and a profit margin of 6 percent. What is the return on equity?
- 8.87 percent
- 6.19 percent
- 11.29 percent
- 10.27 percent
- 9.37 ercent
Question 2: ABC Corporation has the following ratios: Total Asset Turnover= 1.6 Total debt to total assets= 0.5 Current Ratio= 1.7 Current Liabilities= $2,000,000 Sales = $16,000,000 What is the amount of current assets?
- 2,000,000
- 3,200,000
- 3,400,000
- 1,000,000
Question 3: ABC's balance sheet indicates a book value of shareholders' equity of $897,703. The firm's earning per share are $2.9 and the price-earnings ratio is 11.96. If there are 52,701 shares outstanding, what is the market-to-book ratio?
Enter your answer rounded off to two decimal points.
Hint: Market value per share is same as market price per share
Question 4: If the debt ratio is 0.20, the Equity Multiplier is:
- 1.25
- 0.25
- 1.20
- 0.20
- 0.80
- 1.5