Finance and Venture Capital Quiz
(3-1) Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year.
AR = $400,000 (3-2) Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debtratio?
D/A = 60% (3-3) Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio?
M/B = 10 (3-4) A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio?
P/E = 16.0 (3-5) Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE?
ROE = 12%
(3-6) Donaldson & Son has an ROA of 10%, a 2% profit margin, and a return on equity equal to 15%. What is the company’s total assets turnover? What is the firm’s equity multiplier?
S/TA = 5
TA/E = 1.5
(3-7) Ace Industries has current assets equal to $3 million. The company’s current ratio is 1.5, and its quick ratio is 1.0. What is the firm’s level of current liabilities? What is the firm’s level of inventories?
CL = $2,000,000
Inv = $1,000,000
(4-1) If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?
FV = $16,105.10
(4-2) What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?
FV = $1,292.10
(4-6) What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?
FV = $1,725.22
FVA = $1,845.99
(4-13) Find the
AR = $400,000 (3-2) Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debtratio?
D/A = 60% (3-3) Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston’s market/book ratio?
M/B = 10 (3-4) A company has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of 8.0. What is its P/E ratio?
P/E = 16.0 (3-5) Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million and it has total assets of $50 million. What is its ROE?
ROE = 12%
(3-6) Donaldson & Son has an ROA of 10%, a 2% profit margin, and a return on equity equal to 15%. What is the company’s total assets turnover? What is the firm’s equity multiplier?
S/TA = 5
TA/E = 1.5
(3-7) Ace Industries has current assets equal to $3 million. The company’s current ratio is 1.5, and its quick ratio is 1.0. What is the firm’s level of current liabilities? What is the firm’s level of inventories?
CL = $2,000,000
Inv = $1,000,000
(4-1) If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?
FV = $16,105.10
(4-2) What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?
FV = $1,292.10
(4-6) What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?
FV = $1,725.22
FVA = $1,845.99
(4-13) Find the