Sir, 80% correction will be okay for me. if you have any confusion just write the word " doubt" beside the answer.

1.Financial ratios that measure a firm's ability to pay its bills over the short run without undue stress are known as _____ ratios.*

a.Asset management

b.Profitability

c.Solvency/efficiency ratios

d.Market Ratios

2.The External Funds Needed (EFN) equation does not measure the:*

a.Additional asset requirements given a change in sales.

b.Additional total debt financing raised given the change in sales.

c.Rate of return to shareholders given the change in sales.

d.None of the above.

3.If my retained earnings fall short of my capital requirement then I can do the following (assuming I want to grow without taking any additional capital risk)*

A long-term loan

I will grow less and refrain from any external money

I can take a small loan

Issue few shares to raise money

4.Suppose "South End, Inc. has a ROA of 7% and pays a 6% interest on its debt. South End has a capital structure that is 70% equity and 30% debt. Relative to a firm that has similar earnings and is 100% equity financed, South End's Net Profit will be _______ and its ROE will be _________. Choose the best possible answer considering a general scenario*

Lower, lower

Higher, higher

Lower, higher

Difficult to correctly predict with given inforamation

Higher, lower

5.An increase in which one of the following accounts increases a firm's current ratio without affecting its quick ratio?*

Accounts Payable

Inventory

Accounts Receivable

Cash

6.Sales of Beans Lounge in the year 97, 98 & 99 were $100, $110 & $120 respectively. Assume we start our analysis in 97; in that cases what will be the trend percentage in the year 99?*

20%

9.09%

10%

25%

7.What is my required rate of return if I want to convert 150 dollars into 185 USD in a year?*

25%

23.3%

23.8%

26%