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Exam 5: Risk Analysis

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Question 31

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When a company wants to calculate the current ratio the would divide the current assets by the ___________

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Question 32

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The beta coefficient measures the ____________________ of a firm's returns with those of all shares traded in the market (in excess of the risk-free interest rate).

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Question 33

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Caraway Company's net accounts receivable was $300,000 at December 31,2012 and $450,000 at December 31,2013.Net cash sales for 2008 were $425,000.The accounts receivable turnover for 2013 was 7.0,and this turnover figure was computed from net credit sales for the year. Required: What were Caraway's total net sales for 2013? 

Which of the following properly links the factors affecting a firm's ability to generate cash with its need to use cash in operations? Ability to generate cash Need to use cash

Doran Corp.has a current ratio of6.Under which of the following scenarios might this indicate a problem?

By adding the number of days that inventory is held to the number of days that accounts receivable is outstanding an analyst can calculate the number of days of _____________________________________________ the firm requires.

Below is selected information from Marker's 2012 financial statements: -Marker's 2012 Interest Coverage ratio is

What is the effect of the declaration of diviends have on the liquidity of a corporation?

Which of the following properly links the factors affecting a firm's ability to generate cash with its need to use cash in financing? Ability to generate cash Need to use cash

A.What are the three measures that are used to analyze long term solvency risk? B- describe each measure briefly

Below is selected data of Pronto Company: Required:a.What is the accounts receivable turnover for 2012? b.What is the inventory turnover for 2012?

Economic theory teaches that differences in market returns must relate to differences in

When management takes deliberate steps at a balance sheet date to produce a better current ratio than is normal it is called ______________________________.

The ________________________________________ ratio indicates the number of times that net income before interest expense and income taxes exceeds interest expense.

Below is selected information from Marker's 2012 financial statements: -Marker's Liabilities to Assets Ratio for 2012 is

One problem with debt ratios is that they provide no information about the ability of the firm to generate ________________________________________ to service debt.

Financially healthy firms frequently close any cash flow gaps in their operating cycles with ________________________________________.

Market equity beta measures the covariability of a firm's returns with the return's of

Common shareholders benefit with increasing proportions of debt in the capital structure as long as the firm maintains an excess of ____________________ over the after-tax cost of debt

Which of the following states of financial distress would be considered the most troubling for an investor or creditor?