26) What is the market price of one share of stock for a firm with 500,000 shares outstanding, $3,000,000 in total assets, $1,000,000 of total liabilities, and a market-to-book ratio of 4? A) $4 B) $6 C) $16 D) $24 27) If a firm has negative Economic Value Added (EVA), which of the following must be true? A) The firm's ROC is lower than its Weighted A verage Cost of Capital. B) The firm's ROC is also negative. C) The firm's ROE is equal to zero. D) The firm has negative net earnings. 28 Baluba Corp. has an operating profit margin of 8%, a debt burden of 0.6, and has financed two- thirds of its assets through equity. What asset turnover ratio is necessary to achieve an ROE of 14%? A) 1.95 B) 2.21 C) 2.67 D) 4.38 29) If a company has a healthy quick ratio but a significantly lower cash ratio, then you can assume that: A) cash coverage ratio will also be low B) receivables represent a non-negligible portion of current assets. C) the firm sells only on a cash basis. D) inventory represents a non-negligible portion of the firm's current assets. 30) Razorthin, Inc. started the year with $1,000,000 in Total Assets. At the end of the year it reports Asset Turnover equal to 2.5; its year-end income statement shows $1,500,000 Cost of Goods Sold, S300,000 of depreciation expense, $500,000 of interest payments, and that it paid $100,000 in dividends to shareholders. What is Razorthin, Inc. Times Interest Earned? A) 0.2 B) 0.4 C) 1.4 D) 2