FIN 571 NERD Education Specialist /fin571nerd.com FIN 571 NERD Education Specialist /fin571nerd.com | Page 32

Please use excel sheet in case the values changes
Galaxy United, Inc. 2009 Income Statement ($ in millions) Galaxy
United, Inc. 2008 and 2009 Balance Sheets ($ in millions) What is the
return on equity for 2009? 24.
P lease use excel sheet in case the
values changes 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? (Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g., 32.16.) 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? 31. The financial
statement summarizing a firm's accounting performance over a period
of time is the:
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FIN 571 Week 2 DQ 1
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In order to receive proper credit, please reply to this message when
posting your answers to WK2 DQ1.
Suppose you own $1 million worth of 30-year Treasury bonds.
Is this asset riskless?
You own $1 million worth of 90-day Treasury bills. You “roll
over” this investment every 90 days by reinvesting the proceeds in
another issue of 90-day Treasury bills. Is this investment riskless?
Can you think of an asset that is truly riskless?
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