\(\begin{array}{|l|l|} \hline \text { Item } & \text { Value as at 2010, in millions } \\ \hline \text { Sales revenue } & 8.902 \\ \hline \text { Operating revenue } & 9.360 \\ \hline \text { Trading profit before interest and tax } & 5.360 \\ \hline \text { Operating profit before interest and taxes } & 3.118 \\ \hline \text { Interest expense } & 1.361 \\ \hline \text { Operating profit after tax } & 0.360 \\ \hline \end{array}\) -The above information is available for the firm ILA Ltd,which is listed on the Australian Stock Exchange.Calculate the trading profit margin for the firm.

A) \( 0.398 \) B) \( 0.602 \) C) \( 0.706 \) D) \( 1.661 \) A) \( 0.398 \) B) \( 0.602 \) C) \( 0.706 \) D) \( 1.661 \)

\(\begin{array}{|l|r|r|} \hline \text { B.S item/year } & {\mathbf{2 0 0 9}} & {\mathbf{2 0 1 0}} \\ \hline \text { Cash } & 9000 & 3000 \\ \hline \text { Receivables } & 22000 & 10000 \\ \hline \text { Inventory } & 20000 & 12000 \\ \hline \text { Current assets } & \mathbf{3 7 0 0 0} & \mathbf{2 5 0 0 0} \\ \hline \text { Non-current assets } & \mathbf{5 5 0 0 0} & \mathbf{6 0 0 0 0} \\ \hline \text { Current liabilities } & \mathbf{5 4 0 0 0} & \mathbf{3 0 0 0 0} \\ \hline \text { Non-current liabilities } & \mathbf{4 0 0 0 0} & \mathbf{4 5 0 0 0} \\ \hline \end{array}\) -Given the above data,calculate the quick ratio for the firm for 2009.

A) \( 0.135 \) B) \( 0.531 \) C) \( 0.574 \) D) \( 1.156 \) A) \( 0.135 \) B) \( 0.531 \) C) \( 0.574 \) D) \( 1.156 \)

\(\begin{array}{|l|l|l|} \hline \text { Item/year } & \mathbf{2 0 0 9} & \mathbf{2 0 1 0} \\ \hline \text { Profit and lossitems } & \text { (in millions) } & \text { (in millions) } \\ \hline \text { Net annual sales } & 2.325 & 3.351 \\ \hline \text { Operating revenue } & 2.506 & 3.808 \\ \hline \text { Operating profit before interest and tax } & 0.655 & 1.352 \\ \hline \text { Interest expense } & 0.620 & 0.615 \\ \hline \text { Total revenue } & 3.521 & 3.015 \\ \hline \text { Cost of goods sold } & 1.300 & 1.205\\ \hline \\ \hline \text { Balance sheet items } & & \\ \hline \text { Receivables } & 0.805 & 0.900 \\ \hline \text { Inventory } & 0.515 & 0.611 \\ \hline \text { Total Non-current assets } & 5.400 & 5.355\\ \hline \end{array}\) -You are able to obtain the items in the table from a company's balance sheet and profit and loss for 2009 and 2010.Given this information,calculate the receivables turnover for the firm for 2010.

A) \( 2.338 \) B) \( 3.931 \) C) \( 3.997 \) D) \( 4.066 \) A) \( 2.338 \) B) \( 3.931 \) C) \( 3.997 \) D) \( 4.066 \)

\(\begin{array}{|l|l|l|} \hline \text { Item/year } & \mathbf{2 0 0 9} & \mathbf{2 0 1 0} \\ \hline \text { Profit and lossitems } & \text { (in millions) } & \text { (in millions) } \\ \hline \text { Net annual sales } & 2.325 & 3.351 \\ \hline \text { Operating revenue } & 2.506 & 3.808 \\ \hline \text { Operating profit before interest and tax } & 0.655 & 1.352 \\ \hline \text { Interest expense } & 0.620 & 0.615 \\ \hline \text { Total revenue } & 3.521 & 3.015 \\ \hline \text { Cost of goods sold } & 1.300 & 1.205\\ \hline \\ \hline \text { Balance sheet items } & & \\ \hline \text { Receivables } & 0.805 & 0.900 \\ \hline \text { Inventory } & 0.515 & 0.611 \\ \hline \text { Total Non-current assets } & 5.400 & 5.355\\ \hline \end{array}\) -You are able to obtain the items in the table from a company's balance sheet and profit and loss for 2009 and 2010.Given this information,calculate an appropriate measure of business risk for the firm in 2010.

A) \( 0.1024 \) B) \( 0.1140 \) C) \( 0.1176 \) D) \( 0.1180 \) A) \( 0.1024 \) B) \( 0.1140 \) C) \( 0.1176 \) D) \( 0.1180 \)

\(\begin{array}{|l|l|} \hline \text { Item } & \text { Value as at 2010, in millions } \\ \hline \text { Sales revenue } & 8.902 \\ \hline \text { Operating revenue } & 9.360 \\ \hline \text { Trading profit before interest and tax } & 5.360 \\ \hline \text { Operating profit before interest and taxes } & 3.118 \\ \hline \text { Interest expense } & 1.361 \\ \hline \text { Operating profit after tax } & 0.360 \\ \hline \end{array}\) -All of the following ratios are related to efficiency except _______.

A) total asset turnover B) fixed-asset turnover C) average collection period D) cash ratio A) total asset turnover B) fixed-asset turnover C) average collection period D) cash ratio

Exam 14: Quantitative Company Analysis

Research from Arthur,Cheng,Czernkowski (2010),report that earnings predictability has found that disaggregated cash flow models based on components of firm cash flows produce:

Free

(Multiple Choice)

4.9/5

(82)

Question 1

Correct Answer:

Verified

A

The presence of fixed production costs causes operating profit to vary more than __________ over the business cycle.

Free

(Multiple Choice)

4.8/5

(74)

Question 2

Correct Answer:

Verified

D

The quick ratio measures the relationship between:

Free

(Multiple Choice)

4.7/5

(89)

Question 3

Correct Answer:

Verified

C

Standardised financial statements are also known as Generally Accepted Financial Statements (GAFS).

(True/False)

4.9/5

(89)

Question 4

One problem with ratio analysis is that it relies upon:

(Multiple Choice)

4.9/5

(90)

Question 5

The interest coverage ratio is calculated as:

(Multiple Choice)

4.9/5

(83)

Question 6

Item Value as at 2010, in millions Sales revenue 8.902 Operating revenue 9.360 Trading profit before interest and tax 5.360 Operating profit before interest and taxes 3.118 Interest expense 1.361 Operating profit after tax 0.360 -The above information is available for the firm ILA Ltd,which is listed on the Australian Stock Exchange.Calculate the trading profit margin for the firm.

(Multiple Choice)

4.8/5

(90)

Question 7

Patell and Wolfson (1984)found that in the USA the market responds to earnings announcements within:

(Multiple Choice)

4.9/5

(72)

Question 8

Proprietary companies have a limit of how many members?

(Multiple Choice)

4.8/5

(80)

Question 9

Brown (1980)finds a significantly better performance of firms that use LIFO compared with a sample of firms that don't.

(True/False)

4.8/5

(77)

Question 10

Sunder (1973,1975)finds that companies which change to experienced a share price reaction.

(Multiple Choice)

4.8/5

(63)

Question 11

If the return on equity is 5% and the firm has a dividend payout ratio of 40%,what is the sustainable growth rate?

(Multiple Choice)

4.8/5

(84)

Question 12

B.S item/year Cash 9000 3000 Receivables 22000 10000 Inventory 20000 12000 Current assets Non-current assets Current liabilities Non-current liabilities -Given the above data,calculate the quick ratio for the firm for 2009.

(Multiple Choice)

4.9/5

(79)

Question 13

Item/year Profit and lossitems (in millions) (in millions) Net annual sales 2.325 3.351 Operating revenue 2.506 3.808 Operating profit before interest and tax 0.655 1.352 Interest expense 0.620 0.615 Total revenue 3.521 3.015 Cost of goods sold 1.300 1.205 Balance sheet items Receivables 0.805 0.900 Inventory 0.515 0.611 Total Non-current assets 5.400 5.355 -You are able to obtain the items in the table from a company's balance sheet and profit and loss for 2009 and 2010.Given this information,calculate the receivables turnover for the firm for 2010.

(Multiple Choice)

4.8/5

(84)

Question 14

Given a receivables turnover value of 5.326,the average collection period is 68 days.

(True/False)

4.7/5

(74)

Question 15

Which of the following contains a summary of the profitability of a firm over the reporting period?

(Multiple Choice)

4.9/5

(87)

Question 16

Item/year Profit and lossitems (in millions) (in millions) Net annual sales 2.325 3.351 Operating revenue 2.506 3.808 Operating profit before interest and tax 0.655 1.352 Interest expense 0.620 0.615 Total revenue 3.521 3.015 Cost of goods sold 1.300 1.205 Balance sheet items Receivables 0.805 0.900 Inventory 0.515 0.611 Total Non-current assets 5.400 5.355 -You are able to obtain the items in the table from a company's balance sheet and profit and loss for 2009 and 2010.Given this information,calculate an appropriate measure of business risk for the firm in 2010.

(Multiple Choice)

4.9/5

(82)

Question 17

Item Value as at 2010, in millions Sales revenue 8.902 Operating revenue 9.360 Trading profit before interest and tax 5.360 Operating profit before interest and taxes 3.118 Interest expense 1.361 Operating profit after tax 0.360 -All of the following ratios are related to efficiency except _______.

(Multiple Choice)

4.7/5

(91)

Question 18

A firm increases its financial leverage when its ROA is greater than the cost of debt.Everything else equal,this change will probably increase the firm's ROE.

(True/False)

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(66)

Question 19

The Brown,Clinch and Foster (1992)study of earnings announcements concludes that most of the price reaction occurs __________ after the announcement.

(Multiple Choice)

4.9/5

(77)

Question 20

Research from Arthur,Cheng,Czernkowski (2010),report that earnings predictability has found that disaggregated cash flow models based on components of firm cash flows produce:

The presence of fixed production costs causes operating profit to vary more than __________ over the business cycle.

The quick ratio measures the relationship between:

Standardised financial statements are also known as Generally Accepted Financial Statements (GAFS).

One problem with ratio analysis is that it relies upon:

The interest coverage ratio is calculated as:

Patell and Wolfson (1984)found that in the USA the market responds to earnings announcements within:

Proprietary companies have a limit of how many members?

Brown (1980)finds a significantly better performance of firms that use LIFO compared with a sample of firms that don't.

Sunder (1973,1975)finds that companies which change to experienced a share price reaction.

If the return on equity is 5% and the firm has a dividend payout ratio of 40%,what is the sustainable growth rate?

B.S item/year Cash 9000 3000 Receivables 22000 10000 Inventory 20000 12000 Current assets Non-current assets Current liabilities Non-current liabilities -Given the above data,calculate the quick ratio for the firm for 2009.

Given a receivables turnover value of 5.326,the average collection period is 68 days.

Which of the following contains a summary of the profitability of a firm over the reporting period?

Item Value as at 2010, in millions Sales revenue 8.902 Operating revenue 9.360 Trading profit before interest and tax 5.360 Operating profit before interest and taxes 3.118 Interest expense 1.361 Operating profit after tax 0.360 -All of the following ratios are related to efficiency except _______.

A firm increases its financial leverage when its ROA is greater than the cost of debt.Everything else equal,this change will probably increase the firm's ROE.

The Brown,Clinch and Foster (1992)study of earnings announcements concludes that most of the price reaction occurs __________ after the announcement.

The Investment Decision

Australian Financial Markets

The International Investment Environment

Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Alternative Investments

Portfolio Management

Performance Evaluation of Managed Funds

Filters

Exam 14: Quantitative Company Analysis

Research from Arthur,Cheng,Czernkowski (2010),report that earnings predictability has found that disaggregated cash flow models based on components of firm cash flows produce:

The presence of fixed production costs causes operating profit to vary more than __________ over the business cycle.

The quick ratio measures the relationship between:

Standardised financial statements are also known as Generally Accepted Financial Statements (GAFS).

One problem with ratio analysis is that it relies upon:

The interest coverage ratio is calculated as:

Patell and Wolfson (1984)found that in the USA the market responds to earnings announcements within:

Proprietary companies have a limit of how many members?

Brown (1980)finds a significantly better performance of firms that use LIFO compared with a sample of firms that don't.

Sunder (1973,1975)finds that companies which change to __________ experienced a __________ share price reaction.

If the return on equity is 5% and the firm has a dividend payout ratio of 40%,what is the sustainable growth rate?

B.S item/year Cash 9000 3000 Receivables 22000 10000 Inventory 20000 12000 Current assets Non-current assets Current liabilities Non-current liabilities -Given the above data,calculate the quick ratio for the firm for 2009.

Given a receivables turnover value of 5.326,the average collection period is 68 days.

Which of the following contains a summary of the profitability of a firm over the reporting period?

Item Value as at 2010, in millions Sales revenue 8.902 Operating revenue 9.360 Trading profit before interest and tax 5.360 Operating profit before interest and taxes 3.118 Interest expense 1.361 Operating profit after tax 0.360 -All of the following ratios are related to efficiency except _______.

A firm increases its financial leverage when its ROA is greater than the cost of debt.Everything else equal,this change will probably increase the firm's ROE.

The Brown,Clinch and Foster (1992)study of earnings announcements concludes that most of the price reaction occurs __________ after the announcement.

The Investment Decision

Australian Financial Markets

The International Investment Environment

Financial Management: Derivative Instruments and Information Sources

Money Market Securities

Bonds

Investor Preferences and Portfolio Concepts

Risky Asset Pricing Models and the Capm

Alternative Risky Asset Pricing Models

Concepts and Applications of Market Efficiency

Equity Valuation Models

Macro- and Industry Analysis of Share Markets

Qualitative Stock Selection

Futures and Forward Contracts

Option Contracts

Advanced Issues in Options

Alternative Investments

Portfolio Management

Performance Evaluation of Managed Funds

Filters

Sunder (1973,1975)finds that companies which change to experienced a share price reaction.