7) The third party who checks annual financial statements to ensure that they are prepared according to Ceterally Accepted Accounting Principles (GAAP) and verifies that the information reported is reliable is the A) NYSE Enforcement Board B) Accounting Standards Board C) Securities and Exchange Commission (SEC) D) auditor 8) A company has a share price of $22.15 and 118 million shares outstanding. Its market-to-book ratio is 4.2, its book debt-equity ratio is 3.2, and it has cash of $800 million. How much would it cost to take over this business assuming you pay its enterprise value? A) $1.9 billion B) $3.044 billion C) $4.566 billion D) $3.8 billion 9) Which ratio would you use to measure the financial health of a firm by assessing that firm's leverage? A) debt-equity or equity multiplier ratio B) market-to-book ratio C) market debt-equity ratio D) current or quick ratio 10) Convex Industries has inventories of $218 million, current assets of $1.4 billion, and current liabilities of $504 million. What is its quick ratio? A) 1.17 B) 0.94 C) 2.81 D) 2.35 11) Manufacturer A has a profit margin of 2.2%, an asset turnover of 1.7 and an equity multiplier of 5.0. Manufacturer B has a profit margin of 2.5%, an asset turnover of 12 and an equity multiplier of 4.7 How much asset turnover should manufacturer B have to match manufacturer AS ROE? A) 1.59% B) 3.18% C) 2.23% D) 1.27% 12A metal fabrication company is pricing raw supplies of aluminum. The following are the costs to the company to receive one ton of aluminum from various sources. Which source offers the best price for aluminum per ton? A) 3010 U.S. dollars per ton B) 3185 Australian dollars per ton, with $0.953 U.S. - 1 AUD C) 5888 Brazilian reals per ton, with S0.507 U.S. - 1 BRL D) 105,517 Indian rupees per ton, with S0.029 U.S. - 1 INR 13) Stella deposits $4500 in a savings account at a bank that offers interest of 4.7% on such accounts. What is the value of the money in her savings account in one year's time? A) S4298 B) S212 C) $4712 D) $6597 14) An annuity is set up that will pay S1500 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 9%? A) S5776 B) $9626 C) S11,551 D) $13.476