ultimate brain teasers

8/4/2019 Ultimate Brain Teasers

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Ultimate Brain Teasers

The Equalizer


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Liquidity Ratio

Measures how a company can meet its

obligations to its creditors


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Major Corporate Decisions

Investment decision,

Financing decision,

Dividend decision, Working Capital management


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5/24

Price Skimming Policy

an attempt to exploit sections of the market

that are relatively insensitive to price changes.


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Quick Ratio= 6.63

Cash + Receivables 18,632.60

Current Liabilities 2,810.00


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IRR

A Break-even appraisal where all future cash

outflows and inflows are brought to the

current period


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PR = 86.38%

Gross Operating Profit 7,546.50

Gross Sales 8,736.00


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Budgeting

Process of expressing quantified resource

requirements in the future to the current

period.


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Liabilities to Networth= 14.72%

Total Liabilities 2,810.00

Net Worth 19,089.60


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Investment Ratio

Percentages used by Investors to gauge how a

company takes care of its share holders


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Debt to Equity = 13.01%

Total Liabilities 2,810.00

Total Equity 21,593.20


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Payback

Measures a short term period when all

investments can be recovered


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Name the four implications of

sources of Finance Legal

Financial

Dilution

Bankcruptcy


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ROA = 28.66%

Total Assets 24,404.80

Net Income 6,994.30


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Profitability Ratio

Measures the Income generated by a

company and how it compares with other

Balance Sheet Accounts


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Profit Margin = 70.72%

Net Income 6,994.30

Gross Sales 9,890.40


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Cost of Debt

KL = Interest/ PL


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Return on Equity= 32.39%

Net Income 6,994.30 32.39%

Total Equity 21,593.20


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Components of Cash Budget

Time period

Desired cash position

Estimated sales and expenses


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Z-Score Model

A bankruptcy model done by Dr. Altman


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NPV

An appraisal model that brings all future and

current cash inflows and outflows to the

Current time.


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Cost of Equity

Ke= Dividend/ Pe


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Current Ratio= 7.79

Current Assets 21,899.60

Current Liabilities 2,810.00

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