FIN 571 Course Great Wisdom / tutorialrank.com FIN 571 Course Great Wisdom / tutorialrank.com | Page 26

18.Which one of the following sets of ratios would generally be of the
most interest to stockholders?
19.Ratios that measure how efficiently a firm's management uses its
assets and equity to generate bottom line net income are known as
_______ ratios.
20.The higher the inventory turnover, the:
21.The debt-equity ratio is measured as:
22.The Purple Martin has annual sales of $4,600, total debt of
$1,220, total equity of $2,300, and a profit margin of 6 percent. What
is the return on assets?
23.Galaxy United, Inc. 2009 Income Statement($ in millions). What is
the return on equity for 2009?
24.If Wilkinson, Inc., has an equity multiplier of 1.57, total asset
turnover of 1.7, and a profit margin of 6.7 percent, what is its ROE?
25.The financial ratio measured as net income divided by sales is
known as the firm's:
26.The financial ratio that measures the accounting profit per dollar
of book equity is referred to as the:
27.Puffy's Pastries generates five cents of net income for every $1 in
equity. Thus, Puffy's has _______ of 5 percent.
28.If stockholders want to know how much profit the firm is making
on their entire investment in that firm, the stockholders should refer to
the:
29.The most effective method of directly evaluating the financial
performance of a firm is to compare the financial ratios of the firm to:
30.Which one of these equations is an accurate expression of the
balance sheet?