8. Market-to-book ratio is calculated as market value of equity (the number of outstanding common shares times the company's stock price) divided by book value of equity. Which company is more likely to have the highest market-to-book ratio?

A) Google

B) General Motor

C) Target

D) United Airlines

12. Which stakeholder cares about ROE most?

A) Banks

B) Public debtholders

C) Common shareholders

D) Preferred shareholders

E) Both common shareholders and preferred shareholders

13. Company A and Company B have same RNOA, which is 15%. Company A is totally financed by equity and Company B is 80% financed by equity and 20% financed by debt (cost of debt=7%), which of the following situations is more likely to occur?

A) Company A's ROE = Company B's ROE

B) Company A's ROE > Company B's ROE

C) Company A's ROE< Company B's ROE

D) Cannot determine

14. Company A has negative net non-operating obligation (NNO<0) and its net non-operating expense percent (NNEP) is lower than RNOA. Which of the following situations is more likely to occur?

A) RNOA=ROE

B) RNOA>ROE

C) RNOA

D) Cannot determine

15. ROE is computed as:

A) (Net income - Preferred dividends) / Average common shareholders equity

B) Income / Net sales

C) RNOA + (FLEV Spread)

D) A and B

E) A and C

19. The fiscal 2009 financial statements of BJ Services shows average net operating assets (NOA) of $3,708,639 thousand, average net nonoperating obligations (NNO) of $227,777 thousand, and average total liabilities of $1,753,554 thousand. The company's 2009 average stockholders' equity is:

A) 3, 480, 862 thousand

B) 1, 955, 085 thousand

C) 1, 525, 777 thousand

E) There is not enough information to determine the number.

19. The fiscal 2009 financial statements of BJ Services shows average net operating assets (NOA) of $3,708,639 thousand, average net nonoperating obligations (NNO) of $227,777 thousand, and average total liabilities of $1,753,554 thousand. The company's 2009 average stockholders' equity is:

A) 3, 480, 862 thousand

B) 1, 955, 085 thousand

C) 1, 525, 777 thousand

E) There is not enough information to determine the number.