6 points

QUESTION 11

1.Riverhawk Sales, Inc. had a net income of $15,000 on sales of $100,000 last year. Its balance sheet shows debt of $20,000 and equity of $74,000. If the total dividend paid was $8,500, what is its sustainable growth rate?

A.

0.0963

B.

0.1478

C.

0.1333

D.

0.2000

E.

0.1077

F.

0.1636

G.

0.1810

H.

0.1200

6 points

QUESTION 12

1.You are 20 years old and plan to retire with $1,000,000. You have $22,500 available for investment now.You deposit this into an account that pays 9.25% interest compounded annually? How old will you be when the account has the target amount? (Answers are rounded.)

A.

52

B.

63

C.

59

D.

55

E.

61

F.

57

G.

54

H.

65

6 points

QUESTION 13

1.Cash Coverage, Inc. had net sales of $300,000 last year, and increased its retained earnings by $10,000 for the year after paying a dividend of $2 per share on 10,000 outstanding shares.The tax rate for the company is 40%.The company had cost of goods sold of $175,000 and its accumulated depreciation increased by $25,000. What is its cash coverage ratio?

A.

6.00

B.

5.45

C.

4.31

D.

8.50

E.

4.67

F.

2.50

G.

3.71

H.

3.00

6 points

QUESTION 14

1.Lowell Growth, Inc. has total debt ratio of 0.48 and a dividend payout ratio of 40 percent. If its profit margin is 7 percent and total asset turnover is 2.5, what is its return on assets ratio (ROA)?

A.

40.0%

B.

20.6%

C.

35.6%

D.

27.6%

E.

14.6%

F.

31.5%

G.

24.0%

H.

17.5%

6 points

QUESTION 15

1.UML Inc. had an EBIT of 71,000, depreciation expense of 8,500, and paid 19,000 in taxes. Its interest costs were $9,600; its long-term borrowing reduced by $4,000; it raised $6,000 in new equity; and paid $12,000 in dividends. If the net capital spending was $30,000, what was the change in net working capital?

A.

11,200

B.

10,900

C.

9,400

D.

9,700

E.

10,000

F.

10,600

G.

10,300

H.

11,500

6 points

QUESTION 16

1.You opened an account with an investment of $15,000.The value of the account tripled in 21 years.If interest was compounded quarterly, what rate per quarter did you earn on the account?

A.

1.1510%

B.

2.3374%

C.

1.9441%

D.

1.8479%

E.

1.6640%

F.

1.3165%

G.

1.4545%

H.

1.5376%

6 points

QUESTION 17

1.Quick Corporation has current liabilities of $5,400, inventory of $2,600, and net working capital of $2,400. What is its quick ratio?

A.

0.9833

B.

0.9048

C.

0.9375

D.

1.0256

E.

0.9630

F.

1.0000

G.

1.0357

H.

1.0139