1- Suppose that a company is established in the beginning of the year 2020. As of the 2020 year end, you have the following data: (a) Current ratio = 1.2; (b) Equity multiplier = 4; (c) Fixed assets/Invested capital = 0,4; (d) Total liabilities = 3.000 $. What is the weight of fixed assets in the balance sheet?
A. 10%
B. 90%
C. 75%
D. 25%

2- Refer to Question 1. You have the following additional data for the year 2020: (a) Revenue = 10.000 $; (b) Gross profit margin = 50%; (c) OpEx = 4.000 $; (d) Depreciation expense = 100 $; (e) Interest expense = 300 $; (f) Income tax = 20%; (g) price per share = 2 $ . What is the Altman's Z-score? (Assume that the equity section in the balance sheet involves 1 $ par common stocks and retained earnings only. Retained earnings include net profit.)
A. 3,925
B. 3,877
C. 3,835
D. 7,177

3- Refer to Question 1 and 2. Suppose that the company repurchased 50 of its outstanding shares from the market on April 1st, 2020. What is the EPS at the end of year 2020?
A. 1,27
B. 1,59
C. 1,39
D. 2,48

4- Refer to Question 2 above. Calculate the interest coverage ratio using EBITDA. (A brief web search is required).
A. 3,67
B. 3,33
C. 1,87
D. 2,33

Answer rating: 100% (QA)

ANSWERS QUESTION 1 A is the correct answer 10 The balance sheet is one of the important financial statements used for making business decisions The ba... View the full answer