1. Briefly discuss the following:

c) Intangible Assets and 3 Basic Approaches to Valuing Inventory

d) Return on Assets (RoA), Return on Capital (RoC), Return on Equity (RoE)

e) Current Ratio and Quick Ratios, Interest Coverage Ratio

1b. Jobe owns a bakeshop. A new dessert he recently developed is meeting with great customer demand, and he would like to consider expanding his operations. Contrast some financing possibilities for Jobe, discussing which is most feasible.

b) What is a Sweat Equity?

2.a) A manager believes that her company will do extremely well in the upcoming year, surpassing others’ expectations. Should she increase or decrease her leverage?

b) A firm believes that if sales increase by 2%, their EBIT will increase by 3%. What is their degree of operating leverage?

c) A firm believes that if sales increase by 3%, their Net Income will increase by 5%. What is there degree of total leverage?