Question 1: Meaningful peer group analysis requires that members of the peer group:
I. are all in a similar industry
II. have similar looking ticker symbols
III. are of roughly similar size
A. I only
B. I and II only
C. II and III only
D. I and III only
E. none of the choices are criteria for peer group membership
Question 2: Which of the following are profitability ratios?
I. Total Debt / Total Equity
II. EBIT / Interest Expense
III. Net Income / Net Sales
IV. Net Income / Total Equity
A. I only
B. II only
C. II and III only
D. III and IV only
E. none of the choices are profitability ratios
Question 3: Whaling Boats reports the following account balances: inventory of $16,200, equipment of $36,200, accounts payable of $16,250, cash of $11,200, and accounts receivable of $12,400. How much does the firm have in net working capital?
Question 4: A firm has a debt-to-equity ratio of 0.25. What is the firm's total debt ratio?
Question 5: Peterson Hotel Inc., has Earnings before interest and taxes(EBIT) of $9,827. If it has an interest expense of $477 and a net income of $6,481, what was Peterson Hotel's tax rate?