Question Details

Which ratio may be greatly affected by the choice of short-term and long-term debt 



1.	Dell has an inventory period of 1 month, and an account receivable period of 0 (zero) months. It also has a payable period of 6 months. What are the cash conversion cycle period and the interest expense for Dell if they have annual net total (credit) sales volume of $10 billion? The market interest rate is 6.0%.
a.     -5.0, $-250 m    
b.      6.0, $300m    
c.      1.0, $100m    
d.      3.0, $150m    
e.      0.0, $100m
2.	Ryngard Corp's sales last year were $38,000, and its total assets were $16,000.  What was its total assets turnover ratio (TAT)?
a.	2.04
b.	2.14
c.	2.26
d.	2.38
e.	2.49
		
3. 	If your mark up ratio is 25%, what is the margin ratio? 
a.     15%
b.     20%
c.     25%
d.     28%
e.     30%
4.	Last year Rennie Industries had sales of $305,000, assets of $175,000, a profit margin of 5.3%, and an equity multiplier of 1.2.  The CFO believes that the company could reduce its assets by $51,000 without affecting either sales or costs.  Had it reduced its assets by this amount, and had the debt ratio, sales, and costs remained constant, how much would the ROE have changed?
a.	4.10%
b.	4.56%
c.	5.01%
d.	5.52%
e.	6.07%
	5.	 	Which ratio may be greatly affected by the choice of short-term and long-term debt for a given amount of total debt? 
     	a.     Debt ratio  
b.     Profit margin  
c.     TIE  
d.     Quick ratio  
e.     TAT




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