2024 – Which one of the following statements about trend analysis is NOT correct Coverage ratios Sectors
FIN 571 Week 2 Quiz Questions – 2024
- Which one of the following statements about trend analysis is NOT correct?
- Coverage ratios: Sectors, Inc. has an EBIT of $7,221,643 and interest expense of $611,800. Its depreciation for the year is $1,434,500. What is its cash coverage ratio?
- Multiples analysis: Turner Corp. has debt of $230 million and generated a net income of $121 million in the last fiscal year. In attempting to determine the total value of the firm, an investor identified a similar firm in Jacobs, Inc., an all-equity firm. This firm had 150 million shares outstanding, a share price of $14.25, and net income of $182 million. What is the total value of Turner Corp.? Round to the nearest million dollars
- Coverage ratios, like times interest earned and cash coverage ratio, allow
- Peer group analysis can be performed by
- Efficiency ratio: If Viera, Inc. has an accounts receivable turnover of 3.9 times and net sales of $3,436,812, what is its level of receivables?
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