BRAINSCAPE1
UGA FINA 3000 Exam 1 Exam with
complete solutions latest version
__________: represents the "book value" of the firm's equity - CORRECT ANSWER-
shareholder equity
The ______________ represents a historical value of the firm's assets - CORRECT
ANSWER-balance sheet
The _______________ represents the current value investors place on the firm's future
- CORRECT ANSWER-stock price
Dividends + Shareholder equity = - CORRECT ANSWER-Net Income
Sales - Cogs = - CORRECT ANSWER-Gross Profit
___________________: market value of all trading common stock for a company -
CORRECT ANSWER-market capitalization
Price per share x number of shares = - CORRECT ANSWER-market cap
If shareholder equity is greater than market cap, the firm is _____________ -
CORRECT ANSWER-failing
Market value of CS + Market value of PS + Market Value of Interest bearing debt - cash
= - CORRECT ANSWER-enterprise value
Finance focuses on when cash is _______________ - CORRECT ANSWER-received
Financial ratios: Can the firm pay its __________________ bills? - CORRECT
ANSWER-short-term
financial ratios: how ________ is management? - CORRECT ANSWER-efficient
BRAINSCAPE1
, BRAINSCAPE1
financial ratios: how ___________ is the firm? - CORRECT ANSWER-profitable
financial ratios: how does the market ______________ the firm? - CORRECT
ANSWER-value
current assets/current liabilities - CORRECT ANSWER-current ratio
(current assets-inventory)/current liabilities - CORRECT ANSWER-quick ratio
-"acid" test
cash/current liabilities - CORRECT ANSWER-cash ratio
liquidity ratios are used to determine how easily can we convert to ___________ -
CORRECT ANSWER-cash
efficiency ratios are used to determine how well does the firm manage its
_______________ - CORRECT ANSWER-current assets
sales/accounts receivable - CORRECT ANSWER-accounts receivable turnover
cost of goods sold/inventory - CORRECT ANSWER-inventory turnover
sales/total assets - CORRECT ANSWER-total asset turnover
sales/net ppe - CORRECT ANSWER-fixed asset turnover
accounts receivable/(sales/365) - CORRECT ANSWER-collections
coverage ratios are used to measure the ability to make ___________ payments -
CORRECT ANSWER-interest
EBIT/Interest Expense - CORRECT ANSWER-times interest earned (TIE)
The higher the TIE, the _______________ the default risk - CORRECT ANSWER-lower
total asset turnover is relevant in the __________ industry - CORRECT ANSWER-retail
leverage ratios show the % of ____________ - CORRECT ANSWER-debt
debt/total assets - CORRECT ANSWER-total debt ratio
the higher the total debt ratio %, the ___________ the risk - CORRECT ANSWER-
higher
debt/shareholder equity - CORRECT ANSWER-debt/equity ratio
BRAINSCAPE1
UGA FINA 3000 Exam 1 Exam with
complete solutions latest version
__________: represents the "book value" of the firm's equity - CORRECT ANSWER-
shareholder equity
The ______________ represents a historical value of the firm's assets - CORRECT
ANSWER-balance sheet
The _______________ represents the current value investors place on the firm's future
- CORRECT ANSWER-stock price
Dividends + Shareholder equity = - CORRECT ANSWER-Net Income
Sales - Cogs = - CORRECT ANSWER-Gross Profit
___________________: market value of all trading common stock for a company -
CORRECT ANSWER-market capitalization
Price per share x number of shares = - CORRECT ANSWER-market cap
If shareholder equity is greater than market cap, the firm is _____________ -
CORRECT ANSWER-failing
Market value of CS + Market value of PS + Market Value of Interest bearing debt - cash
= - CORRECT ANSWER-enterprise value
Finance focuses on when cash is _______________ - CORRECT ANSWER-received
Financial ratios: Can the firm pay its __________________ bills? - CORRECT
ANSWER-short-term
financial ratios: how ________ is management? - CORRECT ANSWER-efficient
BRAINSCAPE1
, BRAINSCAPE1
financial ratios: how ___________ is the firm? - CORRECT ANSWER-profitable
financial ratios: how does the market ______________ the firm? - CORRECT
ANSWER-value
current assets/current liabilities - CORRECT ANSWER-current ratio
(current assets-inventory)/current liabilities - CORRECT ANSWER-quick ratio
-"acid" test
cash/current liabilities - CORRECT ANSWER-cash ratio
liquidity ratios are used to determine how easily can we convert to ___________ -
CORRECT ANSWER-cash
efficiency ratios are used to determine how well does the firm manage its
_______________ - CORRECT ANSWER-current assets
sales/accounts receivable - CORRECT ANSWER-accounts receivable turnover
cost of goods sold/inventory - CORRECT ANSWER-inventory turnover
sales/total assets - CORRECT ANSWER-total asset turnover
sales/net ppe - CORRECT ANSWER-fixed asset turnover
accounts receivable/(sales/365) - CORRECT ANSWER-collections
coverage ratios are used to measure the ability to make ___________ payments -
CORRECT ANSWER-interest
EBIT/Interest Expense - CORRECT ANSWER-times interest earned (TIE)
The higher the TIE, the _______________ the default risk - CORRECT ANSWER-lower
total asset turnover is relevant in the __________ industry - CORRECT ANSWER-retail
leverage ratios show the % of ____________ - CORRECT ANSWER-debt
debt/total assets - CORRECT ANSWER-total debt ratio
the higher the total debt ratio %, the ___________ the risk - CORRECT ANSWER-
higher
debt/shareholder equity - CORRECT ANSWER-debt/equity ratio
BRAINSCAPE1
