Question Details

Which of the following actions would reduce the company's current ratio 



1. You recently sold to your brother 200 shares of Disney stock, and the transfer was made through a broker, and the trade occurred on the NYSE. This is an example of:

a.	A futures market transaction. 

b.	A primary market transaction. 
c.	A secondary market transaction. 

d.	A money market transaction. 

e.	An over-the-counter market transaction. 

2. Ten years ago, Levin Inc. earned $0.50 per share. Its earnings this year were $2.20. What was the growth rate in Levin's earnings per share (EPS) over the 10-year period?
a.	15.17% 
b.	15.97% 

c.	16.77% 

d.	17.61% 

e.	18.49% 

3. Amram Company's current ratio is 1.9. Considered alone, Which of the following actions would reduce the company's current ratio ?
a.	Borrow using short-term notes payable and use the proceeds to reduce accruals. 

b.	Borrow using short-term notes payable and use the proceeds to reduce long-term debt. 

c.	Use cash to reduce accruals. 

d.	Use cash to reduce short-term notes payable. 

e.	Use cash to reduce accounts payable. 

4. Northwest Lumber had a profit margin of 5.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. What was the firm's ROE?

a.	12.79%

b.	13.47%
c.	14.18%
d.	14.88%
e.	15.63%

_	5.  Ripken Iron Works believes the following probability distribution exists for its stock. What is the coefficient
	of variation on the company's stock?			
		State of the	Probability of		Stock's
		Economy	State Occurring	Expected Return
		Boom	0.25	25%	
		Normal	0.50	15%	
		Recession	0.25	5%	
	a.	0.4360				
	b.	0.4714				
	c.	0.5068				
	d.	0.5448				
	e.	0.5856				


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