cost of capital
following ratios appears on a common-size balance sheet?
I. Debt to asset ratio
II. Net working capital to total assets
III. Net profit margin
10.
Analysis of a company’s financial statements: Below are simplified versions of the balance sheet and income statement for Toys by Tom, Inc. Use this information to answer question 10.
A 15% increase in inventory turns for Toys by Tom, Inc. would bring this ratio to , suggesting in __.
11.
The cash cycle measures the days required to produce finished goods or delivered services.
13.
The sustainable growth rate is the maximum growth rate achievable over an extended period of time.
14.
The cash conversion cycle is calculated as:
15.
Which of following are sources of cash in a statement of sources and uses?
I. Collection of accounts receivables
II. Reduction of long-term debt
III. Payment of dividends
IV. Reduction in the cash account
16.
Which of the following actions, all else being equal, will increase the sustainable growth rate?
17.
Biases can and should always be eliminated in financial forecasts.
18.
Which of the following is commonly forecasted as a percent of sales:
19.
External funding needs are computed as:
20.
A perpetuity is a stream of cash flows that lasts forever.
21.
The higher the opportunity cost of capital the higher the NPV.
22.
A project with an internal rate of return greater than the cost of capital should always be accepted.
23.
The phenomenon of compounding connotes which of the following?
24.
If you invest $2,000 today for three years at 5% interest paid annually, you will earn a total of $_____ in interest. Assume you re-invest all interest.
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