QUESTION 1

1. A decrease of accounts receivable leads to an increase of the working capital.

   True

   False

1 points

QUESTION 2

1. If the company A has a negative leverage effect and its ROE = 12%, then the ROCE is

   		lower than 12%.
   		uncomparable to 12%.
   		higher than 12%.
   		equal to 12%.

1 points

QUESTION 3

1. What is your advice to a company that has a capital gearing equal to 0.8?

   		The company should increase its equity
   		The company should decrease its EBIT
   		The company should decrease its current assets
   		The company should increase its short term debt

1 points

QUESTION 4

1. Which of these 4 companies is taking more risk since i=5%?

   	ROCE	D/E
   Company A	15%	10%
   Company B	15%	20%
   Company C	15%	30%
   Company D	15%	40%

   		Company A
   		Company B
   		Company C
   		Company D

1 points

QUESTION 5

1. The cost of debt after tax is the interest rate after tax.

   True

   False

1 points

QUESTION 6

1. Which indicator assessed the risk faced by each of these 4 companies since i=5%?

   	ROCE	D/E
   Company A	15%	10%
   Company B	15%	20%
   Company C	15%	30%
   Company D	15%	40%

   		The risk is represented by the leverage effect
   		The risk is represented by the interest rate
   		The risk is represented by the ROCE
   		The risk is represented by the D/E ratio

1 points

QUESTION 7

1. Working capital is the sum of operating working capital and nonoperating working capital.

   True

   False

1 points

QUESTION 8

1. What are the liabilities that represent the expenses incurred but not yet paid such as salaries, wages, taxes, and social security?

   		Short-term debt
   		Accrued expenses
   		Accounts payable
   		Long-term debt

1 points

QUESTION 9

1. The intercompany credit is not an indicator of the weakness of a companys strategic position vis--vis its customers and suppliers.

   True

   False

1 points

QUESTION 10

1. The return on capital employed is also the combination of operating profit after tax margin and sales/capital employed.

   True

   False

1 points

QUESTION 11

1. If the net fixed assets represent less than 25% of gross fixed assets,

   		the company will generate very low margins.
   		the company will soon face manufacturing costs higher than competitors.
   		the company will soon see an increase in its profitability.
   		the companys plant and equipment are probably recent.