Financial managers primarily create firm value by:

Gerold invested $115 in an account that pays 7 percent simple interest. How much money will he have at the end of 5 years?

You invested in long-term corporate bonds and earned 6.1 percent. During that same time period, large-company stocks returned 12.6 percent, long-term government bonds returned 5.7 percent, U.S. Treasury bills returned 4.2 percent, and inflation averaged 3.8 percent. What average risk premium did you earn?

You bought 360 shares of stock at a total cost of $7,754.40. You received a total of $403.20 in dividends and sold your shares for $19.98 a share. What was your total rate of return?

On a balance sheet, deferred taxes are classified as:

a current liability.

a fixed asset.

a long-term liability.

stockholders equity.

a current asset.

Which one of these equations is an accurate expression of the balance sheet?

Stockholders equity Assets + Liabilities

Assets Liabilities Stockholders equity

Assets Stockholders equity Liabilities

Liabilities Stockholders equity Assets

Stockholders equity Assets Liabilities

According to generally accepted accounting principles (GAAP), revenue is recognized as income when:

a contract is signed to perform a service or deliver a good.

payment is requested.

income taxes are paid on the revenue earned.

managers decide to recognize it.

the transaction is complete and the goods or services are delivered.

Net working capital is defined as:

current assets plus fixed assets.

current assets plus stockholders' equity.

fixed assets minus long-term liabilities.

current assets minus current liabilities.

total assets minus total liabilities.

The Purple Martin has annual sales of $4,600, total debt of $1,340, total equity of $2,300, and a profit margin of 6 percent. What is the return on assets?

6.00 percent

12.00 percent

20.60 percent

7.58 percent

9.34 percent