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Mike Co. has a net income of $51,300, sales of $897,100, a capital intensity ratio (1/TAT) of .79, and an equity multiplier of 1.67. What is the return on equity?

Group of answer choices

12.09 percent

9.31 percent

11.95 percent

13.76 percent

Flag question: Question 2

Question 23.5 pts

Assume you earned 13.3 percent on your investments for a time period when the risk-free rate was 3.4 percent and the inflation rate was 2.4 percent. What was your real rate of return for the period?

Group of answer choices

10.64 percent

-1.23 percent

11.93 percent

13.63 percent

Flag question: Question 3

Question 32.5 pts

Which one of the following qualifies as an annuity payment?

Group of answer choices

Weekly grocery bill

Car repairs

Clothing purchases

Auto loan payment

Flag question: Question 4

Question 42.5 pts

Which one of the following is defined as the average compound return earned per year over a multiyear period?

Group of answer choices

Standard deviation of returns

Arithmetic average return

Variance of returns

Geometric average return

Flag question: Question 5

Question 52.5 pts

Leon is the owner of a corner store. Which ratio should he compute if he wants to know how long the store can pay its bills given its current level of cash and accounts receivable? Assume all receivables are collectible when due.

Group of answer choices

Cash Coverage ratio

Debt ratio

Current ratio

PE Ratio

Flag question: Question 6

Question 62.5 pts

The Diamond Greens generates $.88 in sales for every $1 invested in total assets. Which one of the following ratios would reflect this relationship?

Group of answer choices

Total Asset Turnover

Profit Margin

Return on Assets

Equity Multiplier

Flag question: Question 7

Question 72.5 pts

The sustainable growth rate is defined as the maximum rate at which a firm can grow given which of the following conditions?

Group of answer choices

No new debt but additional external equity equal to the increase in retained earnings

New debt and external equity in equal proportions

No new external financing of any kind

No new external equity and a constant debt-equity ratio

Flag question: Question 8

Question 83.5 pts

Mixed Mangoes has sales of $734,900, total assets of $767,300, total equity of $431,800, net income of $76,400, and dividends paid of $21,000. What is the internal growth rate?

Group of answer choices

7.78 percent

6.18 percent

8.12 percent

7.99 percent

Flag question: Question 9

Question 92.5 pts

A firm has inventory of $46,500, accounts payable of $17,400, cash of $1,250, net fixed assets of $400,650, long-term debt of $109,500, and accounts receivable of $16,600. What is the common-size percentage of the equity?

Group of answer choices

72.71 percent

65.98 percent

60.13 percent

64.88 percent

Flag question: Question 10

Question 102.5 pts

The standard deviation measures the ________ of a security's returns over time.

Group of answer choices

volatility

expected return

frequency

median value

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