1. A firm wants a sustainable growth rate of 2.93 percent while maintaining a 23 percent dividend payout ratio and a profit margin of 7 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth?

0.06 0.94 0.77 0.18 0.53 2.

A firm has a return on equity of 21 percent. The total asset turnover is 2.0 and the profit margin is 9 percent. The total equity is $7,400. What is the amount of the net income?

$777 $1,554 $3,108 $1,332 $666

Jupiter Explorers has $8,600 in sales. The profit margin is 4 percent. There are 4,300 shares of stock outstanding. The market price per share is $1.90. What is the price-earnings ratio?

33.68 23.75 12.92 11.88 15.20 3.

Jupiter Explorers has $8,600 in sales. The profit margin is 4 percent. There are 4,300 shares of stock outstanding. The market price per share is $1.90. What is the price-earnings ratio?

33.68 23.75 12.92 11.88 15.20 4. Lee Sun's has sales of $3,550, total assets of $3,250, and a profit margin of 4 percent. The firm has a total debt ratio of 40 percent. What is the return on equity?

5. A firm has net working capital of $540, net fixed assets of $2,286, sales of $6,500, and current liabilities of $850. How many dollars worth of sales are generated from every $1 in total assets?

6.

Mario's Home Systems has sales of $2,860, costs of goods sold of $2,200, inventory of $512, and accounts receivable of $434. How many days, on average, does it take Mario's to sell its inventory?

7.A firm has total debt of $1,340 and a debt-equity ratio of 0.19. What is the value of the total assets? 8.

A firm has sales of $1,170, net income of $221, net fixed assets of $534, and current assets of $290. The firm has $96 in inventory. What is the common-size statement value of inventory?

9. At the beginning of the year, a firm has current assets of $332 and current liabilities of $236. At the end of the year, the current assets are $501 and the current liabilities are $276. What is the change in net working capital?

10.The Sarbanes-Oxley Act of 2002 has: reduced the annual compliance costs of all publicly traded firms in the U.S. decreased the number of U.S. firms going public on foreign exchanges. greatly increased the number of U.S. firms that are going public for the first time. decreased senior management's involvement in the corporate annual report. made officers of publicly traded firms personally responsible for the firm's financial statements 11. The potential conflict of interest between a firm's owners and its managers is referred to as which type of conflict? Formation Structural Agency Organizational Territorial.