The Merriam Company has determ

The Merriam Company has determined that its return on equity is 15 percent.You are given the following information: total debt/total assets = 0.35 and total assets turnover = 2.8. What is the profit margin? *

a. 3.48%

b. 5.42%

c. 6.96%

d. 2.45%

e. None of the above

20. Payments for taxes is *

a. Inflows from operating activities

b. Outflows from operating activities

c. Inflows from Financing activities

d. Outflows from Financing activities

21. Repurchase of firms own shares is *

a. Inflows from Investing activities

b. Outflows from Investing activities

c. Inflows from Financing activities

d. Outflows from Financing activities

22. Barber Company has recorded the following payments for the current period: Interest paid on bank loan $300,000, dividends paid to Barber shareholders $200,000, repurchase of Barber Company stock $400,000. The amount to be shown in the Financing Activities Section of Barber’s Cash Flow Statement should be *

a. $300,000

b. $500,000

c. $600,000

d. $900,000

e. None of the above

23. All of the following are included when calculating the acid test ratio except *

a. six-month treasury bills.

b. Inventory

c. accounts receivable.

d. 60-day certificates of deposit.

24. The use of debt in the capital structure of a firm *

a. increases its financial leverage.

b. increases its operating leverage.

c. decreases its financial leverage.

d. decreases its operating leverage.

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

Posted in Uncategorized