Question : Department Bowie State University of Accounting, Finance, and Econo College : 9238
Department Bowie State University of Accounting, Finance, and Econo College of Business Principles of Finance: FIN320 Lecturer: Godwin yere, PhD QUIZ 2. Name Cell Email: 1. A potential investors first consideration is: a. A firm's profitability before liquidity and debt utilization b. A firm's liquidity before profitability and debt utilization c. A firm's debt utilization before profitability and liquidity d. A firm's liability before liquidity and equity 2. What is the return on asset if the asset turnover is twice the profit margin of 0.20? a. 0.030 b. 0.080 c. 0,060 d, 0.20 3. A company with a debt-to-asset ratio of 20 as a return on asset 6% what the compa of is Return on Equity? b. 0.075 0.070 d, 0.80 4. If the current assets and current liabilities of a firm are $30,000 and $40,000 respectively, what is the quick ratio of the company if it has $2,000 of inventory? a. 0.70 b. 0.07 0.80 d. 0.20 What is the essence of debt utilization ratio? 6. What are the two ways of forecasting to determine the financial needs of the firm?