17:28 15/11/2023 LÀM LẠI ĐỀ MIDTERM

LÀM LẠI ĐỀ MIDTERM

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MIDTERM 1:
Question 1: Laiho Industries reported the following information in its annual report:
- Net income = $7.0 million.
- NOPAT = $60 million.
- EBITDA = $120 million.
- Net profit margin = 5.0%.
Laiho has a depreciation expense, but no amortization expense. Laiho has $300 million in
operating capital, its after-tax cost of capital is 10%, and the firm’s tax rate is 40%.
What is Laiho’s depreciation expense?
EBITDA (Earning before interest, taxes, depreciation and amortization)
NOPAT (Net Operating Profit After Tax)
A. $53.0 million
B. $77.1 million
C. $30.0 million
D. $20.0 million
E. $60.0 million
NOPAT = EBIT * (1-t) = 60 => EBIT = 60/ (1-40%) = 100
=> Depreciation Expenses = EBITDA – EBIT = 120 - 100 = 20m
Question 2: Roberts Corp's sales last year were $300,000, and its net income after taxes
was $25,000. What was its profit margin on sales?
A. 7.65%
B. 8.33%
C. 7.82%
D. 7.99%
E. 8.16%
The profit margin is computed as shown below:
=Net income/Sales= $25000/$300000 = 8.33%
Question 3: Which of the following statements is CORRECT?
A. The income statement gives us a snapshot of what is happening at a point in time.
B. The balance sheet gives us a picture of the firm’s financial situation over a period of time.
C. The statement of cash flows tells us how much cash the firm has in the form of currency
and demand deposits.
D. The statement of cash needs tells us how much cash the firm will require during some
future period, generally a month or a year.
E. Four key financial statements are the balance sheet, the income statement, the
statement of cash flows, and the statement of retained earnings.
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Because:
LÀM Four
LẠItypes of financial statements the balance sheet, the income statement,
ĐỀ MIDTERM
the cash flow statement, and the statement of owner’s equity can be crucial in helping
you meet your financing goals
Question 4: For 2015, Miami Metals reported $9,000 of sales, $6,000 of operating costs
other than depreciation, and $1,500 of depreciation. The company had no amortization
charges, it had $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state
income tax rate was 40%. 2016 data are expected to remain unchanged except for one item,
depreciation, which is expected to increase by $1,000. By how much will the net income
change as a result of the change in depreciation? The company uses the same depreciation
calculations for tax and stockholder reporting.
A.-$400
B.-$800
C.-$500
D.-$700
E.-$600
EBIT (2015) = 9000 - 6000- 1500 = 1500
EBT = EBIT - Interest
=> Net income = EBT(1-t) = (1500- 4000*7%) * (1-40%) = 732
EBIT (2016) = 9000 - 6000 - (1000+ 1500) = 500
=> Net income(new) = (500-4000*7%) * (1-40%) = 132
=> Change in Net Income = 132 - 732 = -600
Question 5: Miller Metals recently reported $9,000 of sales, $6,000 of operating costs other
than depreciation, and $1,500 of depreciation. The company had no amortization charges,
it had $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax
rate was 40%. What was its net cash flow?
A.$2,380
B.$2,471
C.$2,232
D.$2,545
E.$2,618
EBT= Sale - Cost - Depreciation
Interest=4000*7%=280
EBT=9000-6000-1500-280=1220
Profit After Tax = Profit Before Tax (EBT) - Tax = $1,220 - $1220*7% = $732
Cash Flow = Profit After Tax +Depreciation = $732 + 1500 = $2,232
Question 6
Laiho Industries reported the following information in its annual report:
· Net income = $7.0 million.
· NOPAT = $60 million
· EBITDA = $120 million.
· Net profit margin = 5.0%.
Laiho has a depreciation expense, but no amortization expense. Laiho has $300 million in
operating capital, its after-tax cost of capital is 10%, and the firm’s tax rate is 40%.
What is Laiho’s interest expense?
A.$95.0 million
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B.$88.3 million
C.$82.5LÀM LẠI ĐỀ MIDTERM
million
D.$60.0 million
E.$92.0 million
NOPAT= Net profit +Net Interest*(1-Tax rate) = 60
=> 60 = 7 + Net interest *60%
=> Net interest = 88,34m
Question 7: Companies generate income from their "regular" operations and from things
like interest on securities they hold, which is called non-operating income. Mitel Metals
recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and
$1,500 of depreciation. The company had no amortization charges and no non-operating
income. It had issued $4,000 of bonds that carry a 7% interest rate, and its federal-plus-
state income tax rate was 40%. What was the firm's operating income, or EBIT?
A.$1,400
B.$1,200
C.$1,300
D.$1,500
E.$1,100
EBIT = Sales - Costs - Depreciation = 9000 - 6000 - 1500 = 1500
Question 8
Which of the following statements is CORRECT?
A.Changes in working capital have no effect on free cash flow.
B.Free cash flow (FCF) is defined as follows:
FCF = EBIT(1-T)
+ Depreciation and Amortization
- Capital expenditures required to sustain operations.
- Required changes in net operating working capital.
C.Free cash flow (FCF) is defined as follows:
FCF = EBIT(1-T)+ Depreciation and Amortization + Capital expenditures.
D.Operating cash flow is the same as free cash flow (FCF).
E.Operating cash flow (OCF)is defined as follows: OCF = EBIT(1-T) - Depreciation and
Amortization.
Question 9: Laiho Industries reported the following information in its annual report:
· Net income = $7.0 million.
· NOPAT = $60 million.
· EBITDA = $120 million.
· Net profit margin = 5.0%.
Laiho has a depreciation expense, but no amortization expense. Laiho has $300 million in
operating capital, its after-tax cost of capital is 10%, and the firm’s tax rate is 40%.
What are Laiho’s sales?
A.$120.0 million
B.$160.0 million
C.$180.0 million
D.$200.0 million
E.$140.0 million
Net Profit margin = Net Income / Sale => Sales = 7/5%=140m
Question 10: At the end of 2014, Scaringe Medical Supply had $275 million of retained
earnings. During 2015, Scaringe had earnings per share of $0.75 (on 20 million shares), and
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paid a dividend of $0.25 per share. What was the level of retained earnings that Scaringe
had at LÀM LẠIofĐỀ
the end MIDTERM
2015?
A.$295 million
B.$285 million
C.$255 million
D.$275 million
E.$265 million
Dividend payout= Number of shares*Dividend per share=20m*$0.25=$5m
Earning for the year=Number of shares*Earning per share
=20m*$0.75 = $15m
Retained earning at the end of 2002 = Retained earning at the end of 2001 + Net
income for the year 2002 - Dividend paid during the year 2002 = $275+$15-$5=$285m
Question 11: Rex Corp's EBITDA last year was $385,000 (= EBIT + depreciation +
amortization), its interest charges were $10,000, it had to repay $25,000 of long term debt,
and it had to make a payment of $20,000 under a long term lease. The firm had no
amortization charges. What was the EBITDA coverage ratio? (EBITDA coverage =
(EBITDA+Lease payments)/total financial charges)
A. 7.36
B. 8.25
C. 7.69
D. 7.91
E. 8.42

Solution:
● EBITDA =$385,000
● Lease payments = $20,000
● debt payments =$25,000
● Interest =$10,000
EBITDA Coverage Ratio = (EBITDA + Lease payments) / (Interest + debt repayments +
lease payment)
= (385,000 + 20,000) / (10,000 + 20,000 + 25,000) = 7,36
Question 12: Which of the following statements is CORRECT?
A. The statement of cash flows reflects cash flows from operations and from borrowings, but
it does not reflect cash obtained by selling new common stock.
B.The statement of cash flows shows where the firm’s cash is located, with a listing of
all banks and brokerage houses where cash is on deposit.
C.The statement of cash flows for 2015 shows how much the firm’s cash (the total of
currency, bank deposits, and short-term liquid securities, or cash equivalents) increased or
decreased during 2015.
D.The statement of cash flows reflects cash flows from continuing operations, but it does not
reflect the effects of changes in working capital.
Because: The statement B is correct because it reflects operating, investing and
financial activities
The statement A is incorrect because it reflects the actual amount of money the
company receives from its operations.
The statement C is incorrect because it reflects stock buying activities, i.e. financial
activities
The statement D is incorrect because it reflects the purchase and sale of fixed assets,
i.e. investment activities
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The statement E is incorrect because it reflects the change of working capital;

LÀM
increase/ LẠI ĐỀ MIDTERM
decrease in current assets other than cash or decrease/ increase in cash.
Question 13: Johnson Battery Systems Metals recently reported $9,000 of sales, $6,000 of
operating costs other than depreciation, and $1,500 of depreciation. The company had no
amortization charges, it had $4,000 of bonds that carry a 7% interest rate, and its federal-
plus-state income tax rate was 40%. In order to sustain its operations and thus generate
sales and cash flows in the future, the firm was required to make $800 of capital
expenditures on new fixed assets and to invest $500 in net operating working capital. What
was its free cash flow?
A. $1,200
B. $1,100
C. $1,300
D. $1,000
E. $1,400

Solution:
EBIT = Sales - Costs - Depreciation
= 9000 - 6000 - 1500 = 1500
Free cash flow = EBIT (1- Tax rate ) + Depreciation - Changes in working capital -
Capital expenditure
= 1500 (1 - 40%) + 1500 - 500 - 800 = 1100

Question 14. Which of the following statements is CORRECT?

A. If a firm is more profitable than average (e.g., Google), we would normally
expect to see its stock price exceed its book value per share.
B. The more depreciation a firm has in a given year, the higher its EPS, other things
held constant.
C. Typically, a firm’s DPS should exceed its EPS.
D. If a firm is more profitable than average, we would normally expect to see its book
value per share exceed its stock price, especially after several years of high inflation.
E. Typically, a firm’s EBIT should exceed its EBITDA. (fail because EBITDA=EBIT+DA)

Because: The book value per share (BVPS) is calculated by taking the ratio of equity
available to common stockholders against the number of shares outstanding. When
compared to the current market value per share, the book value per share can provide
information on how a company’s stock is valued. If the value of BVPS exceeds the
market value per share, the company’s stock is deemed undervalued.
Question 15: Superior Medical System's 2015 balance sheet showed total common equity of
$2,050,000. The company had 100,000 shares of stock outstanding which sold at a price of
$57.25 per share. By how much did the firm's market value and book value per share differ?
A. $36.75
B. $40.25
C. $38.25
D. $39.50
E. $51.00

Solution:
Market value = 100,000 x 57,25 = $5,725,000
Less book value of 2,050,000 = (5,725,000-2,050,000) / 100,000
= $36,75 per share
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LÀM
Question 16:LẠI ĐỀ MIDTERM Inc. recently reported net income of $5.2 million and
Shop-Til-You-Drop
depreciation of $600,000. What is was net cash flow? Assume it has no amortization
expense.
A. $6,000,000
B. $6,200,000
C. $5,800,000
D. $5,600,000
E. $5,400,000

Solution:
Net income + non cash charges = Cash flow = $5,200,000 + 600,000 = $5,800,000
Question 17: Lennox Furniture Company's 2015 balance sheet showed total current assets of
$1,500,000. All of the current assets were required in operations, and its current liabilities
consisted of $300,000 of accounts payable, $200,000 of 6% short-term notes payable to the
bank, and $100,000 of accrued wages and taxes. What was the net operating working
capital that was financed by investors at the end of 2015?
A. $1,400,000
B. $1,100,000
C. $1,200,000
D. $1,300,000
E. $1,500,000

Solution:
NOWC = Current operating assets - Current operating liabilities
= (all asset required in operations) - (Payable - Accrued expense)
= 1,500,000 - (300,000 + 200,000 - 100,000)
= 1,100,000
Question 18: Which of the following items can be found on a firm’s balance sheet under
current liabilities?
A. Cost of goods sold.
B. Depreciation expenses.
C. Accrued wages.
D. Accrued amortization charges.
E. Accounts receivable.

Because: Short-term debt, also called current liabilities, is a firm's financial obligations
that are expected to be paid off within a year.
Common types of short-term debt include short-term bank loans, accounts payable,
wages, lease payments, and income taxes payable. So, the statement C is correct.

Question 19: Which of the following factors could explain why last year Cleaver Energy had
negative net cash flow, but the cash on its balance sheet increased?
A. The company sold a new issue of bonds.
B. The company repurchased 20% of its common stock.
C. The company had high amortization expenses.
D. The company made a large investment in new plant and equipment
E. The company paid a large dividend.

Because: The correct answer is statement A.

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Repurchasing common stock is a use of cash, so cash on the balance sheet decreases.
LÀMstatement
Therefore, LẠI ĐỀ MIDTERM
B is incorrect
If the company has large depreciation and amortization expenses, it makes NCF less
negative. Depreciation and amortization expenses are non-cash charges, so they will
not affect cash on the balance sheet. Therefore, statement C is incorrect.
A large investment in new plant and equipment is a use of cash, so cash on the balance
sheet decreases. Therefore, statement D is incorrect.
If the company pay a large dividend, it is a use of cash, so cash on the balance sheet
decreases. Therefore, the statement E is incorrect.
Question 20: Which of the following items is NOT included in current assets?
A. Accounts payable.
B. Cash.
C. Inventory.
D. Short-term, highly liquid, marketable securities.
E. Accounts receivable.

Because: Current assets include cash, cash equivalents, accounts receivable, stock
inventory, marketable securities, pre-paid liabilities, and other assets as short-term,
highly liquid
MIDTERM 2:
Question 1: For 2015, Miami Metals reported $9,000 of sales, $6,000 of operating costs
other than depreciation, and $1,500 of depreciation. The company had no amortization
charges, it had $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state
income tax rate was 40%. 2006 data are expected to remain unchanged except for one
item, depreciation, which is expected to increase by $1,000. By how much will the net
income change as a result of the change in depreciation? The company uses the same
depreciation calculations for tax and stockholder reporting.
A. -$800
B. -$500
C. -$700
D. -$400
E. -$600
EBIT (2015) = 9000 - 6000- 1500 = 1500
EBT = EBIT - Interest
=> Net income = EBT(1-t) = (1500- 4000*7%) * (1-40%) = 732
EBIT (2016) = 9000 - 6000 - (1000+ 1500) = 500
=> Net income(new) = (500-4000*7%) * (1-40%) = 132
=> Change in Net Income = 132 - 732 = -600
Question 2: Ramala Corp's sales last year were $48,000, and its total assets were $25,500.
What was its total assets turnover ratio (TATO)?
A. 1.99
B. 1.10
C. 1.88
D. 1.21
E. 1.32
Giải thích: TATO = Sales/Total Asset = 48.000/25.500 = 1.88
Question 3: Ruby Corp's sales last year were $435,500, its operating costs were $350,000,
and its interest charges were $10,000. What was the firm's times interest earned (TIE)
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ratio?
A. 8.81 LÀM LẠI ĐỀ MIDTERM
B. 8.68
C. 8.55
D. 8.29
E. 8.42
Giải thích TIE =EBIT/interest exp = (435.500-350.000)/10.000 =8,5
Question 4: Roberts Corp's sales last year were $300,000, and its net income after taxes
was $25,000. What was its profit margin on sales?
A. 7.65%
B. 8.16%
C. 7.99%
D. 8.33%
E. 7.82%
Profit margin on sales = net income/net sales =25000/300000 =8,33%
Question 5: Kirby Industries has sales of $110,000 and accounts receivable of $12,500, and
it gives its customers 30 days to pay. The industry average DSO (Days Sales Outstanding) is
25.5 days, based on a 365 day year. If the company changes its credit and collection policy
sufficient to cause its DSO to fall to the industry average, and if it earns 9.5% on any cash
freed-up by this change, how would that affect the firm's net income, assuming other things
are held constant?
A. $435.43
B. $422.12
C. $447.86
D. $469.93
E. $457.43
Accounts receivable of industry = sales x DSO/ 365 = 110,000 x 25.5/365
= 7,684.
the difference in Account receivable = 12,500-7684 = $4,816.
their net income would improve by $4,816 x 9.5% = $457.43
Question 6: Rangoon Corp's sales last year were $400,000, and its year-end total assets
were $300,000. The average firm in the industry has a total assets turnover ratio (TATO) of
2.5. The new CFO believes the firm has excess assets that can be sold so as to bring the
TATO down to the industry average without affecting sales. By how much must the assets
be reduced to bring the TATO to the industry average?
A. $120,000
B. $110,000
C. $140,000
D. $130,000
E. $100,000
Year-end total assets – Last year total asset
= Year-end total assets - (sales/TATO)
= 300.000 - (400.000/2.5) = 140.000
Question 7: Burger Corp has $500,000 of assets, and it uses only common equity capital
(zero debt). Its sales for the last year were $600,000, and its net income after taxes was
$25,000. Stockholders recently voted in a new management team that has promised to
lower costs and get the return on equity up to 15%. What profit margin would Burger need
in order to achieve the 15% ROE, holding everything else constant?
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A. 12.50%
LÀM LẠI ĐỀ MIDTERM
B. 14.00%
C. 9.50%
D. 11.00%
E. 8.00%
Net Profit Margin = Net Income / Sales
ROE = Net Income / Common Equity
⇒ Net Income = Common Equity * ROE
⇒ Profit Margin = (Common Equity * ROE) / Sales
= ($500,000 * 15%) / $600,000 = 12.50%
Question 8: During the latest year Ruth Corp. had sales of $300,000 and a net income of
$20,000, and its year-end assets were $200,000. The firm's total debt to total assets ratio
was 40%. Based on the Du-pont equation, what was the firm's ROE?
A. 16.67%
B. 16.00%
C. 15.67%
D. 16.33%
E. 15.33%
Return on Equity = (Net Profit Margin)* (Asset Turnover) *(Equity Multiplier)
ROE = (net income/sales)*(sales/assets)*(assets/equity)
net income/sales = $20,000/$300,000 = .0667
sales/assets = 300,000/200,000 = 1.5
equity is 60% of assets = $120,000 because debt ratio is 40%
assets/equity = 200,000/(200,000*60%) = 200,000/120,000 = 1.667
ROE = .0667 x 1.5 x 1.667 = .16678
Question 9:

Last year the firm had $15,000 of net income on $200,000 of sales. However, the new CFO
thinks that inventories are excessive and could be lowered sufficiently to cause the current
ratio is equal to the industry average, 2.5, without affecting either sales or net income.
Assume inventories are sold off and not replaced to get the current ratio to 2.5, and the
funds generated are used to buy back common stock at book value without changing
anything else. By how much will the ROE change?
A.4.70%
B.4.96%
C.5.54%
D.5.28%
E.5.91%
Net income $15,000; Sales $200,000
Actual current ratio = current assets/current liabilities
= ($10,000+$50,000+$150,000)/($30,000+$20,000) = 4.2
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=> Old current ratio = 4.2, Target current ratio = 2.5,

LÀM
Old ROE LẠIIncome/Common
= Net ĐỀ MIDTERM Equity = 15,000/200,000= 7.5%
Target current ratio = 2.5 => Current asset = 2.5 * current liabilities = 2.5 *
(30,000+20,000) = 115,000
Required inventory to reach target = Asset - Cash - Receivable
= 115,000 - 10,000 - 50,000 = $65,000
Required inventory reduction = 150,000 - 65,000 = 85,000
The funds generated are used to buy back common stock at book value without
changing anything else.
=> New Equity = 200,000 - 85,000 = $115,000
New ROE= Net Income/Common Equity = 15,000/115,000 = 13.04
%Change in ROE= New - Old = 13,04 - 7.5 = 5.54%
Question 10
Regan Corp's sales last year were $450,000, and its year-end receivables were $45,000. On
average, Regan's customers pay 10 days late (and thus they are charged a penalty). How
many days of "free" credit does Regan give its customers before they are late and thus
assessed a penalty?
Base your answer on this equation: DSO - Average days late = Days of free credit, use a
365-day year when calculating the DSO, and round to the closest whole number.
A.31 days
B.27 days
C.29 days
D.25 days
E.23 days
DSO = 365 * average accounts receivable / credit sales
= 365 * 45,000/450,000 = 36.5
DSO - Average days late = Days of free credit => Days free = 36,5 - 10 = 26.5 days
Question 11: Companies J and K each reported the same earnings per share (EPS), but
Company J’s stock trades at a higher price. Which of the following statements is correct?
A.Company J must have fewer growth opportunities.
B.Company J must have a higher P/E ratio.
C.Company J must have a higher market-to-book ratio.
D.Company J must be riskier.
E.Company J must pay a lower dividend.
Because P/E = Stock Price Per Share / Earnings Per Share
Question 12: Cooper Inc's latest EPS was $4.00, its book value per share was $20.00, it had
200,000 shares outstanding, and its debt ratio was 40%. How much debt was outstanding?
A.$2,666,667
B.$3,333,333
C.$2,333,333
D.$3,000,000
E.$4,333,000
Total equity = 20 x 200,000 = 4,000,000, which is 60% of the total asset,
so total asset = 4,000,000/0.6 = 6,666,666
debt is 40% of the total asset, so 6,666,666 x 0.4 = 2,666,667
Question 13: The Charleston Company is a relatively small, privately owned firm. Last year
the company had net income of $15,000 and 10,000 shares were outstanding. The owners
were trying to determine the equilibrium market value for the stock prior to taking the
company public. A similar firm that is publicly traded had a price/earnings ratio (P/E) of
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5.0. Using only the information given, estimate the market value of one share of
LÀM LẠI
Charleston’s ĐỀ MIDTERM
stock.
A.$ 2.50
B.$10.00
C.$ 3.50
D.$ 7.50
E.$ 5.00
EPS (Earnings Per Share) = After-Tax Net Income / Outstanding Shares
EPS = $15,000/10,000 = $1.50
P/E = Market Price per Share / Earnings Per Share
P/E = 5.0 => P = EPS * 5 = 1.5 * 5 = $7.50
Question 14

Last year the firm had $15,000 of net income on $200,000 of sales. However, the new CFO
thinks that inventories are excessive and could be lowered sufficiently to cause the current
ratio is equal to the industry average, 2.5, without affecting either sales or net income.
Assume inventories are sold off and not replaced to get the current ratio to 2.5, and the
funds generated are used to buy back common stock at book value without changing
anything else. By how much will the ROE change?
A.5.28%
B.4.70%
C.5.91%
D.5.54%
E.4.96%
Net income $15,000; Sales $200,000
Actual current ratio = current assets/current liabilities
= ($10,000+$50,000+$150,000)/($30,000+$20,000) = 4.2
=> Old current ratio = 4.2, Target current ratio = 2.5,
Old ROE = Net Income/Common Equity = 15,000/200,000= 7.5%
Target current ratio = 2.5 => Current asset = 2.5 * current liabilities = 2.5 *
(30,000+20,000) = 115,000
Required inventory to reach target = Asset - Cash - Receivable
= 115,000 - 10,000 - 50,000 = $65,000
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Required inventory reduction = 150,000 - 65,000 = 85,000

LÀMgenerated
The funds LẠI ĐỀ MIDTERM
are used to buy back common stock at book value without
changing anything else.
=> New Equity = 200,000 - 85,000 = $115,000
New ROE= Net Income/Common Equity = 15,000/115,000 = 13.04
%Change in ROE= New - Old = 13,04 - 7.5 = 5.54%
Question 15

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LÀM LẠI ĐỀ MIDTERM

What is the firm's EPS?

A. $2.25
B. $2.39
C. $2.04
D. $2.11
E. $2.50
EPS = Net Income / Share outstanding = 122.4 / 60 = 2.04
Question 16
What is the firm's current ratio?
A. 1.50
B. 1.40
C. 1.10
D. 1.30
E. 1.20
Current ratio = CA / CL = 2340 / 1800 = 1.3
Question 17
What is the firm's quick ratio?
A. 0.41
B. 0.49
C. 0.57
D. 0.33
E. 0.25
Quick ratio = (CA - Inventory) / CL = (2340 - 1320) / 1800 = 0,57
Question 18
What is the firm's ROA?
A. 3.65%
B. 2.90%
C. 3.41%
D. 3.24%
E. 3.06%
ROA = NI / Average total assets = 122.4 / 4000 = 3.06%
Question 19:
What is the firm's TIE?
A. 3.13
B. 2.82
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C. 3.49
D. 3.30 LÀM LẠI ĐỀ MIDTERM
E. 2.98
TIE = EBIT/ Interest expenses = 300 / 96 = 3,125 ~ 3.13
Question 20
What is the firm's days sales outstanding?
A. 53.90 days
B. 52.80 days
C. 51.30 days
D. 55.50 days
E. 54.80 days
DSO = Account Receivables / (Annual sales / 360 days) = 52.8
nếu 360 k ra kqua thì thay = 365
Question 21
What is the firm's total assets turnover?
A. 1.50
B. 1.30
C. 1.20
D. 1.40
E. 1.10
TOTA = Sales / Total asset = 6000 / 4000 = 1.5
Question 22
What is the firm's profit margin?
A. 2.52%
B. 2.40%
C. 2.16%
D. 2.28%
E. 2.04%
Firm profit margin = NI / Sales = 122.4 / 6000 = 2.04%
Question 23
What is the firm's equity multiplier?
A. 3.00
B. 3.33
C. 2.67
D. 3.16
E. 2.84
Equity multiplier = Total Asset / Total Equity = 4000 / 1200 = 3,33
Question 24
What is the firm's dividends per share?
A. $0.31
B. $0.51
C. $0.41
D. $0.71
Div per share = Div / Number of shares = 42.8 / 60 = 0.71
Question 25
What is the firm's free cash flow per share?
A. $3.86
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B. $4.31
C. $4.01LÀM LẠI ĐỀ MIDTERM
D. $3.71
E. $4.16
FCF per share = FCF/ Shares outstanding = EAT + Depreciation / Share outstanding = (EBT -
Tax) + Depreciation / Shares outstanding = EBT*(1- tax rate) + Depreciation / Share
outstanding = (EBIT- Interest - Tax)*(1-tax rate) + Depreciation) / Share outstanding = (NI
+Dep) / Share
= [204 * (1-0,4) +100.2] / 60 = (122.4 + 100.2) / 60 = 3.71
Question 26
What is the firm's market-to-book ratio?
A. 1.68
B. 1.38
C. 1.53
D. 1.83
E. 1.98
Market-to-book ratio = Price per share / Book value per share = 30.6 / (1200 / 60) = 1.53

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