Question 6 Net Working Capital is: A. The amount by which cash

| June 6, 2016

Question

Net Working Capital is:
A. The amount by which cash exceeds current liabilities
B. The amount by which current assets exceed current liabilities
C. The total value of current assets and current liabilities
D. The difference between total assets and current assets

Question 7

Sales for company X were $3,000,000. The Cost of Goods Sold was $1,200,000. The Gross
Margin is:
A. 60%
B. 40%
C. $1,800,000
D. $1,200,000

Question 9

Asset turnover represents
A. The ability of the firm to generate income from operations for a particular level of sales.
B. The ability to generate sales from a particular investment in assets.
C. The ability to manage the level of investment in assets for a particular level of assets.
D. The number of days, on average, it takes management to turnover assets.

Question 10

On December 31, 2010, the Balance Sheet of Company X showed Retained Earnings of
$1,000,000. On December 31, 2011, the Balance Sheet of Company X showed Retained Earnings
of $1,300,000. Company X reported net income of $500,000 for the year ending December 31,
2011. How much did company X pay out in dividends to its shareholders.
A $800,000
.
B. $500,000
C. $300,000
D
.

$200,000

Question 15

Market equity beta measures the covariability of a firm’s returns with the returns of
A. all industry competitors in the market.
B. risk free securities.
C. all securities in the market.
D. all firms of comparable market value.

Question 16

Which statement would be most consistent with the Treasury Stock Method of calculating
diluted earnings per share:
The current market price of a Company’s common shares has no bearing on the calculation
of earnings per share
B. The best possible investment for a company is in its own common shares.
C. The main concern with the Treasury Stock Method is that it is always anti­dilutive to per
share earnings.
D It is more conservative to use basic shares outstanding than diluted share outstanding when
.
calculating EPS.
A
.

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