1. PNW Corp. reports 2015 and 2016 total revenues of $80 million and $92 million, respectively.If we expect prior growth to persist, we would forecast a revenue growth rate of:

A.25%

B.35%

C.20%

D.15%

2. The Capital Asset Pricing Model states that the expected return on a particular asset relates to all of the following components except:

A.The risk-free rate

B.The beta risk

C.The alpha risk

D.The market risk premium

3. Which of the following contains an unlikely relationship?

A.As cost of goods sold increases, the analyst would expect to see changes in inventories and accounts payable.

B.The more CAPEX a company has made in the past, the more depreciation the company will see in the future.

C.Cash receipts from customers are related to sales revenues and changes in accounts receivable.

D.As sales increase, the analyst would expect to see cost of goods sold decrease, as well as, selling, general and administrative expenses.

4. Which of the following will createa concern for management?

A.Decreasing TIE over time.

B.Decreases in the effective tax rate.

C.Decreases in DSO and DOH?

D.Increases in total asset turnover.

E.Increasing ROA over time.

5. Google has an equity book value of $87B per the company's latest 10-Q.Google shares trade at $535.Google has 678MM shares outstanding.Google also has $59B in cash, $5B in debt.

A.Google's equity market value (market cap) is approximately $465B.

B.Google's enterprise value is approximately $309B.

C.Google's equity market value (market cap) is approximately $401B.

D.Google's enterprise value is approximately $417B.

6. Which of the following statements is false?

A.For CCC, the higher the better.

B.For ROA and ROE, the higher the better.

C.For Debt Ratio, the lower the better.

D.For TIE and EBITDA Coverage, the higher the better.

7. Which of the following would cause the cash conversion cycle to decrease?

A.None of the listed answers are correct.

B.Increasing days payable outstanding.

C.Increasing the days inventory held.

D.Increas the average collection period.

8.When projecting the statement of cash flows, the following represent operating cash outflows:

A.Increase in wages payable.

B.Decrease in accounts receivable.

C.Increase in property, plant and equipment.

D.Decrease in accounts payable.ing the average collection period.