Exam 5: Risk Analysis

Univariate bankruptcy prediction models help identify factors related to bankruptcy,but they do not provide information about

Below is selected information from Marker's 2012 financial statements: -Marker's 2012 Long-term Debt to Shareholders' Equity ratio is

All of the following are common industry risks faced by companies except:

_________________________ concerns a firm's ability to make interest and principal payments on borrowings as they become due.

Mobile Company Mobile Company manufactures computer technology devices. Selected financial data for Mobile is presented below, use the information to answer the following questions: -Refer to the information for Mobile Company.Mobile's current ratio in 2010 was

Given the following information,calculate for Year 2 the number of days of working capital financing the firm will need to obtain from other sources?

Bankruptcy analysis research has gone through many iterations,from univariate bankruptcy prediction models to sophisticated logit models.However,after examining the results of the research there appear to be a number of common factors that consistently explain bankruptcy.These factors can be grouped into investment factors,financing factors,operating factors.For each of the three groups discuss specific factors that have been found to significantly explain bankruptcy.

One common problem with the current ratio is that it is susceptible to "window dressing." If prior to the end of the accounting period Saxon Company has a current ratio of 1.5 and management wishes to boost its current ratio it may decide to

When calculating the quick ratio,an analyst would include in the numerator cash,________________________________________,and receivables.

In bankruptcy prediction analysis a type ____________________ error is classifying a firm as bankrupt and it ultimately survives.

Mobile Company Mobile Company manufactures computer technology devices. Selected financial data for Mobile is presented below, use the information to answer the following questions: -Refer to the information for Mobile Company.Mobile's quick ratio changed by what percentage from 2009 to 2010?

Changes in foreign exchange rates can affect a firm in all of the following ways except:

The Johnson company has a current ratio of 1.45.The company has just sold $600,000 worth of merchandise on credit.What will the current ratio be after the sales on credit?

In general,the shorter the number of days of needed financing,the ____________________ is the cash flow from operations to average current liabilities.

The source of risk related to management competence,strategic direction and lawsuits is _________________________.

Which of the following properly links the factors affecting a firm's ability to generate cash with its need to use cash in investing? Ability to generate cash Need to use cash

Short-term ____________________________ represents a firm's near-term ability to generate cash to service working capital needs and debt service requirements.

Large current ratios indicate the availability of cash and near cash assets to repay ____________________ coming due within the next year.

The current risk-free rate of return in the economy is 6%.In addition,the market rate of return is currently 8.5% A.Given this information,what would be the expected return on common stock for a company with a systemic risk level (Beta)of 1.3? Show your calculations. B.Describe systemic risk.

When the excess of ROA over the after-tax cost of borrowing declines,additional ________________________________________ begins to reduce the return to common shareholders.