MBA 702. Self-Assessment 2
Which one of the following statements is correct if the LSUS Corporation has a
receivables turnover of 20? - answerIt collects on its sales for an average of 18.25 days
A flow of unending and equal payments that occur at regular intervals of time is called
a(n): - answer perpetuity.
If you can afford a $400 monthly car payment, how much can can you afford if interest
rates are 7% on 36-month loans? (Final Answer rounded up to 2 decimals) -
answer$12,954.59
Suppose Han purchased a one-bedroom house near LSUS today for $110,000,
including the cost of some minor repairs. He expects to be able to resell it in four years
for $150,000 if he just puts a little effort into cleaning up the property. At a discount rate
of 6.5 percent, what is the expected net present value of this purchase
opportunity?(Final answer rounded up 2 decimals) - answer6,598.46
Ratios that measure the LSUS Corporation's ability to meet its long-term debt
obligations without undue stress are known as: - answerliquidity ratios
which one of the following ratios least measures a firm's ability to pay the interest to its
creditors? - answerdebt Ratio
LSUS Corporation has sales of $584,000, costs of $337,000, interest paid of $16,800,
total assets of $800,000, and depreciation of $100,400. The tax rate is 45 percent and
the equity multiplier is 1.2. What is the return on equity? - answer10.71%
You just won a lottery. The lottery offers two options for receiving the proceeds: a lump
sum of $50,000 today or payments of $550 a month for ten years. If you can earn 6
percent, compounded monthly, which option should you take and why? (Final answer
rounded up to two decimals). - answerYou should accept the lump sum because the
payments are only worth $49,540.40 today.
LSUS Corporation has sales of $22,400, net income of $3,600, net fixed assets of
$18,700, inventory of $2,800, and total current assets of $6,300. What is the common-
size statement value of inventory? - answer11.20%
LSUS Corporation has cash of $218, accounts receivable of $457, accounts payable of
$398, and inventory of $647. What is the value of the quick ratio? (Final Answer
rounded up to two decimals) - answer1.70
Which one of the following statements is correct if the LSUS Corporation has a
receivables turnover of 20? - answerIt collects on its sales for an average of 18.25 days
A flow of unending and equal payments that occur at regular intervals of time is called
a(n): - answer perpetuity.
If you can afford a $400 monthly car payment, how much can can you afford if interest
rates are 7% on 36-month loans? (Final Answer rounded up to 2 decimals) -
answer$12,954.59
Suppose Han purchased a one-bedroom house near LSUS today for $110,000,
including the cost of some minor repairs. He expects to be able to resell it in four years
for $150,000 if he just puts a little effort into cleaning up the property. At a discount rate
of 6.5 percent, what is the expected net present value of this purchase
opportunity?(Final answer rounded up 2 decimals) - answer6,598.46
Ratios that measure the LSUS Corporation's ability to meet its long-term debt
obligations without undue stress are known as: - answerliquidity ratios
which one of the following ratios least measures a firm's ability to pay the interest to its
creditors? - answerdebt Ratio
LSUS Corporation has sales of $584,000, costs of $337,000, interest paid of $16,800,
total assets of $800,000, and depreciation of $100,400. The tax rate is 45 percent and
the equity multiplier is 1.2. What is the return on equity? - answer10.71%
You just won a lottery. The lottery offers two options for receiving the proceeds: a lump
sum of $50,000 today or payments of $550 a month for ten years. If you can earn 6
percent, compounded monthly, which option should you take and why? (Final answer
rounded up to two decimals). - answerYou should accept the lump sum because the
payments are only worth $49,540.40 today.
LSUS Corporation has sales of $22,400, net income of $3,600, net fixed assets of
$18,700, inventory of $2,800, and total current assets of $6,300. What is the common-
size statement value of inventory? - answer11.20%
LSUS Corporation has cash of $218, accounts receivable of $457, accounts payable of
$398, and inventory of $647. What is the value of the quick ratio? (Final Answer
rounded up to two decimals) - answer1.70
