BFIN Practice- Questions with Correct Verified
Answers
Which of the following is NOT a method of "benchmarking"?
Utilizing the DuPont system to analyze a firm's performance.
Identifying a group of firms that compete with the company being analyzed.
Conducting an industry group analysis.
Evaluating a single firm's performance over time.
Evaluating a single firm's performance over time.
Pedro & Son's total common equity at the end of last year was $405,000 and its net income
was $70,000. What was its ROE?
14.82%
15.60%
16.42%
17.28%
, 17.28%
Gateway Corp. has an inventory turnover ratio of 5.6. What is its day's sales in inventory?
(Round your final answer to nearest day.)
65 days
57 days
61 days
64 days
65 days
Trident Corp., has debt of $3.35 million with an interest rate of 6.875 percent. The
company has an EBIT of $2,766,009. What is its times-interest-earned ratio? (Round your
final answer to nearest number.)
13 times
12 times
11 times
None of these
Answers
Which of the following is NOT a method of "benchmarking"?
Utilizing the DuPont system to analyze a firm's performance.
Identifying a group of firms that compete with the company being analyzed.
Conducting an industry group analysis.
Evaluating a single firm's performance over time.
Evaluating a single firm's performance over time.
Pedro & Son's total common equity at the end of last year was $405,000 and its net income
was $70,000. What was its ROE?
14.82%
15.60%
16.42%
17.28%
, 17.28%
Gateway Corp. has an inventory turnover ratio of 5.6. What is its day's sales in inventory?
(Round your final answer to nearest day.)
65 days
57 days
61 days
64 days
65 days
Trident Corp., has debt of $3.35 million with an interest rate of 6.875 percent. The
company has an EBIT of $2,766,009. What is its times-interest-earned ratio? (Round your
final answer to nearest number.)
13 times
12 times
11 times
None of these
