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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

  1. 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?
  2. 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
  3. 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.
  4. Dividend per Share $15, Earnings per Share $150, Price Per Share $300.
    1. Based on the above information, which of the following is the correct result of Payout Propensity Ratio? 5%, 10%, 50%, or 100%
    2. Based on the above information, which of the following is the correct result of Dividend Yield? 5%, 10%, 50%, or 100%
  5. 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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