Please ignore the questions that reference "Problem 2" (Questions 5, 6, 7, and 9)

Problem 3: (4 pts each) Select the best answer for the following: 1. The goal of the firm is to: a. Maximize profits b. Maximize cash C. Maximize owner wealth d. Minimize risk 2. Increasing the company's debt and interest will have an impact on the firm's: a. Operating Income b. Operating leverage c. Financial leverage d. Break even point 3. A company sells their product for $460 per unit and they have variable costs per unit of $393. The fixed costs of the company are presently $3,000,000. If the company increases the fixed costs by 25% and increases the selling price per unit by 10%, with variable costs per unit remaining the same, the breakeven point in units will: a. decrease b. increase c. remain the same d. Not enough information given 4. From the Investor's viewpoint the security used to raise capital with the most risk is: a. Debt b. Preferred stock c. Common stock d. All have equal risk 5. Based on the statements used for Problem 2" (Old Man Company), the "average collection period" for 2020 is: a. 8.19 times b. 43.96 days C. 44.57 days d. $2,849 per day 6. Based on the statements used for Problem 2" (Old Man Company), the "operating profit margin" for 2020 is: a. 12.01% b. 49.03% c. 15.67% d. 22.88% 7. Based on the statements used for "Problem 2" (Old Man Company), the "Interest coverage ratio" for 2020 is: a. 3.17 times b. 6.26 times c. 2.91 times d. None of the above 8. When utilizing the indifference point to help make a financing decision, if your projected EBIT is less than the EBIT calculated from the indifference point, the plan with the highest amount of debt least # of shares) will give you: a. The highest EPS b. The lowest EPS c. The same EPS d. Cannot determine based on the information given 9. Based on the statements used for Problem 2" (Old Man Company), the "inventory turnover" for 2020 is: a. 22.61 times b. 11.52 times c. 10.00 times d. 19.62 times 10. An owner maximizes their wealth when: a. the company increases the assets b. the company's cash flow goes up c. the stock provides growth and dividends d. the company's income goes up