FIN\/571 – 46335444 \/ Assignment: Week 2 Practice Quiz<\/b><\/p>\n
Multiple Choice Question 53<\/p>\n
Which one of the following statements about trend analysis is NOT<\/b> correct?<\/p>\n
This benchmark is based on a firm’s historical performance.<\/p>\n
The Standard Industrial Classification (SIC) System<\/b> is used to identify benchmark firms.<\/p>\n
All of these are true statements.<\/p>\n
It allows management to examine each ratio over time and determine whether the trend is good or bad for the firm.<\/p>\n
Multiple Choice Question 68<\/b><\/p>\n
Coverage ratios<\/b>: Sectors, Inc., has an EBIT of $7,221,643 and interest expense of $611,800. Its depreciation for the year is $1,434,500. What is its cash coverage ratio?<\/p>\n
14.15 times<\/p>\n
None of these<\/p>\n
15.42 times<\/p>\n
18.34 times<\/p>\n
Multiple Choice Question 68<\/p>\n
Multiples analysis<\/b>: Turner Corp. has debt of $230 million and generated a net income of $121 million in the last fiscal year. In attempting to determine the total value of the firm, an investor identified a similar firm in Jacobs, Inc., an all-equity firm. This firm had 150 million shares outstanding, a share price of $14.25, and net income of $182 million. What is the total value of Turner Corp.? Round to the nearest million dollars.<\/p>\n
$1,715 million<\/p>\n
$1,651 million<\/p>\n
$1,191 million<\/p>\n
$1,421 million<\/p>\n
Multiple Choice Question 46<\/p>\n
Coverage ratios, like times interest earned and cash coverage ratio, allow<\/p>\n
a firm’s creditors to assess how well the firm will meet its interest obligations.<\/p>\n
a firm’s creditors to assess how well the firm will meet its short-term liabilities other than interest expense.<\/p>\n
a firm’s management to assess how well they meet short-term liabilities.<\/p>\n
a firm’s shareholders to assess how well the firm will meet its short-term liabilities.<\/p>\n
Multiple Choice Question 54<\/b><\/p>\n
Peer group analysis can be performed by<\/p>\n
a) management choosing a set of firms that are similar in size or sales, or who compete in the same market.<\/p>\n
b) using the average ratios of this peer group, which would then be used as the benchmark.<\/p>\n
c) identifying firms in the same industry that are grouped by size, sales, and product lines, in order to establish benchmark ratios.<\/p>\n
d) Only a and b relate to peer group analysis.<\/p>\n
Multiple Choice Question 61<\/b><\/p>\n
Efficiency ratio: <\/b>If Viera, Inc., has an accounts receivable turnover of 3.9 times and net sales of $3,436,812, what is its level of receivables?<\/p>\n
$13,403,567<\/p>\n
$1,340,357<\/p>\n
$81,234<\/p>\n
$881,234<\/p>\n
Study Objective<\/b>
\nResults<\/b>Explain what benchmarks are, describe how they are prepared, and discuss why they are important in financial statement analysis.0.00\/2.0 (0%)Multiple Choice Question 53-Multiple Choice Question 54- Discuss how financial ratios facilitate financial analysis and be able to compute and use them to analyze a firm’s performance.0.00\/3.0 (0%)Multiple Choice Question 68-Multiple Choice Question 46-Multiple Choice Question 61- Explain the three general approaches to valuation and value a business using common business valuation approaches.0.00\/1.0 (0%)Multiple Choice Question 68- <\/p>\n","protected":false},"excerpt":{"rendered":"
FIN\/571 – 46335444 \/ Assignment: Week 2 Practice Quiz Multiple Choice Question 53 Which one of the following statements about trend analysis is NOT correct? This benchmark is based on a firm’s historical performance. The Standard Industrial Classification (SIC) System is used to identify Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-25629","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/25629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=25629"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/25629\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=25629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=25629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=25629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}