Question
Firm AAAs stock is currently trading at $2 per share. The Total Shares Outstanding of Firm AAA is 3 billion. Based on this information is
- Firm AAAs stock is currently trading at $2 per share. The Total Shares Outstanding of Firm AAA is 3 billion. Based on this information is this a Mid-Cap firm, Micro-Cap firm, Large Cap firm, or small cap firm?
- Firm DDD has Current Assets = $50 and Current Liabilities = $100. Which of the following is the correct Current Ratio of this firm? a. 0.5 b. 0.005 c. 1 d. 2
- Which of the following financial ratio is forward-looking: (I) Asset turnover ratio, (II) Current ratio; (III) Price to Book ratio; (IV) Price to Earnings ratio.
- Dividend per Share $15, Earnings per Share $150, Price Per Share $300.
- Based on the above information, which of the following is the correct result of Payout Propensity Ratio? 5%, 10%, 50%, or 100%
- Based on the above information, which of the following is the correct result of Dividend Yield? 5%, 10%, 50%, or 100%
- Income Statement
EBIT 140
Interest Expense 50
Balance Sheet Statement
Total Assets (including Current Assets and Non-Current Assets) 1300
Long-Term Debt 400
Total Stockholders' Equity (Book Value of Equity) 1600
Tax Rate 35%
A. By computing the Leverage Ratio of this firm, which of the following is correct?
a. The firm has 0% Long-Term Debt and 100% Equity in Capital Structure
b. The firm has 20% Long-Term Debt and 80% Equity in Capital Structure
c. The firm has 80% Long-Term Debt and 20% Equity in Capital Structure
d. The firm has 100% Long-Term Debt and 0% Debt in Capital Structure
B. Which of the following is the correct (Return on Equity) ROE of this firm?
a) 0% b) 4.50% c)5.69% d)3.66%
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