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#8 The Border company had the following data: Sales $2,500,000 Cost of goods sold $987,654 Operating Costs $500,000 Depreciation $126,987 Interest Expense $98,000 Tax rate
#8 | The Border company had the following data: | ||
Sales | $2,500,000 | ||
Cost of goods sold | $987,654 | ||
Operating Costs | $500,000 | ||
Depreciation | $126,987 | ||
Interest Expense | $98,000 | ||
Tax rate | 40.00% | ||
What is the Interest Coverage for the firm? | |||
a | Interest Coverage = | 9.03 | |
b | Interest Coverage = | 8.03 | |
c | Interest Coverage = | 10.03 | |
d | Interest Coverage = | 3.03 | |
#9 | You have found the following information. | ||
The P/E ratio in 2019 | 15 | ||
The P/E ratio in 2020 | 18.5 | ||
Which of the following statements is the most accurate? | |||
a | The stock price has become relatively expensive. | ||
b | The stock price has become relatively inexpensive. | ||
c | The stock price has been relatively unchanged. | ||
d | The P/E ratio does not relate to the stock price. | ||
#10 | Which of the following statements is the most accuarate? | ||
a | Efficiency ratios measure how well assets turn into sales. | ||
b | Efficiency ratios measure how well assets turn into profits. | ||
c | Efficiency ratios measure how well assets turn into debt. | ||
d | Efficiency ratios measure how well assets relate to liabilities. |
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