Question details

FIN305 Unit 5 Chapter 7 Quiz 2018 (Perfect Answer)
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Question

Question 1

1 out of 1 points

Under the Employee Retirement Income Security Act, a company can be liable for its pension plan up to

30% of its net worth

30% of pension liabilites

30% of liabilities

40% of its net worth

Question 2

1 out of 1 points

All but which of these ratios are considered to be debt ratios?

Times interest earned

Debt Ratio

Fixed charge ratio

Current Ratio

Question 3

5 out of 5 points

Match the five ratios with their formulas.

Question

a. times interest earned

b. fixed charge coverage

c. debt ratio

d. debt/equity ratio

e. debt to tangible net worth

_____1.Total Liabilities Shareholders' Equity - Intangible Assets

_____ 2.Total Liabilities Total Assets Recurring Earnings, Excluding Interest Expense, Tax Expense,

_____ 3.Equity Earnings, and Minority Expense Interest Expense, Including Capitalized Interest Recurring Earnings, Excluding Interest Expense, Tax Expense, Equity Earnings, and Minority Earnings

_____ 4. Interest Portion of Rentals Interest Expense, including Capitalized Interest + Interest Portion of Rentals

_____ 5.Total Liabilities Shareholders' Equity

Question 4

1 out of 1 points

Which of the following ratios can be used as a guide to a firm’s ability to carry debt from an income perspective?

Times interest earned

Debt/equity

Debt to tangible net worth

Debt ratio

Question 5

1 out of 1 points

In computing debt to tangible net worth, which of the following is not subtracted in the denominator?

Patents

Land

Goodwill

Trademarks

Question 6

1 out of 1 points

In computing the debt ratio, which of the following is subtracted in the denominator?

Trademarks

Patents

Marketable Securites

None of the above.

 

 

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