Which one of the following is NOT a liquidity ratio?
A.Current Ratio
B.Quick Ratio
C.Cash Coverage Ratio
D.Cash Ratio
Standard Company had net sales of Rs. 750,000 over the past year. During that time, average receivables were Rs. 150,000. Assuming a 365-day year, what was the average collection period?
A.5 days
B.36 days
C.48 days
D.73 days
If a corporation's sales are projected to grow at a rate higher than its Sustainable Growth Rate (SGR) without raising new debt, the firm must take which of the following actions?
A.Increase Profit Margin
B.Increase Total Assets Turnover
C.Sell new shares of equity
D.All of the given options
Sian Corporation has a Return on Assets (ROA) of 12.5 percent and a retention ratio of 3/5 (60 percent). What is the Internal Growth Rate (IGR) of Sian Corporation?
A.12.29%
B.14.29%
C.16.29%
D.18.92%
What would be the Sustainable Growth Rate (SGR) if a corporation has a Return on Equity (ROE) of 20 percent and a retention ratio of 4/6 (66.67 percent)?
A.25 %
B.35 %
C.29 %
D.45 %
The Internal Growth Rate (IGR) indicates the maximum rate at which:
A.The firm grows
B.Sales of the firm grows
C.Profit of the firm grows
D.None of the given options
A firm has distributed Rs. 150,000 as cash dividends out of its net income of Rs. 250,000. What is the plowback (retention) ratio for the firm?
A.12 %
B.25 %
C.40 %
D.60 %
Which of the following corporate policies is directly measured and reflected by the retention ratio (plowback ratio)?
A.Operating efficiency
B.Asset use efficiency
C.Financial policy
D.Dividend policy
S&T Company has 35,000 common shares outstanding, trading at a market price of Rs. 99 per share at year-end. If the Income Statement reports a net income of Rs. 385,000, what is the Price-Earnings (P/E) ratio for S&T Company?
A.8 times
B.9 times
C.10 times
D.11 times