BUSI 530 QUIZ 1 / BUSI530 QUIZ 1:LATEST-LIBERTY UNIVERSITY
23 views 0 purchase
Course
BUSI 530 (BUSI530)
Institution
Liberty University
BUSI 530 QUIZ 1 / BUSI530 QUIZ 1:LATEST-LIBERTY UNIVERSITY• BUSI 530 QUIZ 1
Question 1
2 out of 2 points
A firm with no leases has a long-term debt ratio of 50%. This means that the book value of equity:
Answer
• Question 2
2 out of 2 points
The us...
A firm with no leases has a long-term debt ratio of 50%. This means that
the book value of equity:
Answer
Selected Answer: equals the book value of long-term debt.
Correct Answer: equals the book value of long-term debt.
Response correct
Feedback:
Question 2
2 out of 2 points
The use of debt in the firm's capital structure will increase ROE if the firm:
Answer
Selected Answer: earns a higher return than the rate paid on
debt.
Correct Answer: earns a higher return than the rate paid on
debt.
Response correct
Feedback:
Question 3
2 out of 2 points
,When Tri-C Corp. compares its ratios to industry averages, it has a higher
current ratio, an average quick ratio, and a low inventory turnover. What
might you assume about Tri-C?
Answer
Selected Answer: Its average inventory is too
high.
Correct Answer: Its average inventory is too
high.
Response correct
Feedback:
Question 4
2 out of 2 points
Calculate the average collection period for Dotte Inc. if its accounts
receivables were $500 and $600 at the end of each of the last two years,
and its revenue over the last year was $3,000:
Answer
Selected Answer: 61 days
Correct Answer: 67 days
Response Average collection period = ((500 +
Feedback: 600)/2)/(3000/365)= 67 days
Question 5
2 out of 2 points
, A high dividend yield indicates:
Answer
Selected Answer: the stock price is relatively high.
Correct Answer: investors require a high rate of return.
Response incorrect
Feedback:
Question 6
2 out of 2 points
TSI Inc. has enough liquid assets to finance its operations for 67 days and
cash, marketable securities, and receivables totaling $1,000. TSI's average
daily expenditures from operations are:
Answer
Selected Answer: $14.93
Correct Answer: $14.93
Response 67 days = 1000/average daily
Feedback: expenditures
Average daily expenditures = $14.93
Question 7
2 out of 2 points
Which of the following may be the best measure of company performance?
Answer
Selected Answer: EVA
Correct Answer: EVA
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ATIHUB. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
