5) Free cash flow is defined as 5) A) cash flows available for payments to stockholders of a firm after the firm has B) cash flows available for payments to stockholders and debt holders of a fim C) cash flows available for payments to stockholders and debt holders of a firm D) cash flows available for payments to stockholders and deht holders of a firm made payments to all others with claims against it. after the firm has made investments in assets necessary to sustain t operations of the firm. that would be tax-free to the recipients after the firm has made payments necessary to vendors. he ongoing 6) Burt's TVs has current liabilities of $25 million. Cash makes up 40 percent of the 6) current assets and accounts receivable makes up another 20 percent of current assets. Burt's current ratio -0.85 times. What is the value of inventory listed on the firm's balance sheet? A) $10m. B) $4.25m. C) S40m D) $8.5m 7) A firm reported sales of $10 million. It had a debt ratio of 40 percent and total debt 7) amounted to $3 million. What was the firm's capital intensity ratio? B) 0.40 times A) 1.25 times C) 2.02 times D) 0.75 times 8) PJ's Ice Cream Parlour has asked you to help piece together financial information on sales $50 million, total debt $20 million, debt ratio 50 percent, and ROE 12 D) 4 percent 8 the firm for the most current year. Managers give you the following information: percent. Using this information, what is PJ's ROA? A) 12 percent B) 10 percent C) 6 percent 9) Fancy Paws' year-end price on its common stock is $20. The firm has total assets of S40 million, the debt ratio is 40 percent, there is no preferred stock, and there are 2 million shares of common stock outstanding. Calculate the market-to-book ratio for 9) Fancy Paws. A) 1.67 B) 8.00 C) 10.00 D) 0.47 0. The firm has a profit margin 10) 10) Fancy Paws' year-end price on its common stock is $20 of 12 percent, total assets of $20 million, a total asset turnover ratio of 0.5, no preferred stock, and there are 2 million shares of common stock outstanding. What is the PE ratio for Fancy Paws? B) 3.33 C) 10.00 D) 8.33 A) 33.33 11) You are considering an investment that is expected to pay 5 percent in year 1, 7 percent in years 2 and 3 and 9 percent in year 4. If you invest $2,000 today, what will this investment be worth at the end of the fourth year? C) $2,501.42 D) $2.620.68 A) $2,693.71 B) $2,713.04