Question
QUESTION 1 A decrease of accounts receivable leads to an increase of the working capital. True False 1 points QUESTION 2 If the company A
QUESTION 1
-
A decrease of accounts receivable leads to an increase of the working capital.
True
False
1 points
QUESTION 2
-
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
-
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
-
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
-
The cost of debt after tax is the interest rate after tax.
True
False
1 points
QUESTION 6
-
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
-
Working capital is the sum of operating working capital and nonoperating working capital.
True
False
1 points
QUESTION 8
-
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
-
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
-
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
-
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.
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