1.A firm has 50,000,000 shares outstanding with a current market PPS of $25.57. If the firm has total assets of $600M, total liabilities of $175M and net income of $500M, it would have a P/E of _____ and a Market-Book ratio of _______.

A.

2.56; 3.01

B.

5.32; 8.25

C.

8.25; 5.32

D.

3.01; 2.56

2.SGA = $25M; TA = $350; AR = $15M; Total Revenue = $375M. What would be the common size values for (a) SGA; and (b) AR?

A.

4.29%; 6.67%

B.

6.67%; 4.29%

C.

7.14%; 4.00%

D.

4.00%; 7.14%

3.EBIT goes from $30M to $33M; Depreciation goes from $10M to $12M; and interest expense goes from $6 M to $8M. What is the percent change in the numerator of the cash coverage ratio? What is the approximate percent change in the cash coverage ratio?

A.

-16%

B.

16%

C.

21%

D.

-21%

4.If D/A is .45, according to the balance sheet identity what would be (a) D/E; and (b) the Equity Multiplier?

A.

1.55; 1.45

B.

1.45; 1.55

C.

0.82; 1.82

D.

1.82; 0.82