公司财务管理习题Chap003.doc

Chapter 03 Working with Financial Statements ? Multiple Choice Questions? 1.?Common-size financial statements present all balance sheet account values as a percentage of:?A.?the forecasted budget.B.?sales.C.?total equity.D.?total assets.E.?last years account value. ? 2.?The ratios that are based on financial statement values and used for comparison purposes are called:?A.?financial ratios.B.?industrial statistics.C.?equity standards.D.?accounting returns.E.?analytical standards. ? 3.?The Du Pont identity can be totally defined by which one of the following??A.?Return on equity, total asset turnover, and equity multiplierB.?Equity multiplier and return on assetsC.?Profit margin and return on equityD.?Total asset turnover, profit margin, and debt-equity ratioE.?Equity multiplier, return on assets, and profit margin ? 4.?Which one of the following is the maximum growth rate that a firm can achieve without any additional external financing??A.?Du Pont rateB.?External growth rateC.?Sustainable growth rateD.?Internal growth rateE.?Cash flow rate ? 5.?The sustainable growth rate is defined as the maximum rate at which a firm can grow given which of the following conditions??A.?No new external financing of any kindB.?No new debt but additional external equity equal to the increase in retained earningsC.?New debt and external equity in equal proportionsD.?New debt and external equity, provided the debt-equity ratio remains constantE.?No new equity and a constant debt-equity ratio ? 6.?Which one of the following is the abbreviation for the U.S. government coding system that classifies a firm by its specific type of business operations??A.?BECB.?SEDC.?BIDD.?SICE.?SBC ? 7.?Builders Outlet just hired a new chief financial officer. To get a feel for the company, she wants to compare the firms sales and costs over the past 3 years determine if any trends are present and also determine where the firm might need to make changes. Which one of the fol