MPFAFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání 5l\% 35 c D / A c D A B <£> D 4 Q B C A B C 9 B C D Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. 9.17% 6.38% 5.93% 4.17% What should be the main goal of a corporation? Maximizing the company's profit. Maximizing company value. Maximizing project activities. Cost minimization in any case. If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? The interest coverage ratio will not change. The interest coverage ratio will increase. The interest coverage ratio will decrease. Interest rate changes are not included in the indicator. Select the incorrect statement regarding asset turnover. The higher the value of the indicator, the higher the ROA and the lower the ROE. This is a determinant of company growth. The higher the value of the indicator, the higher the ROA and ROE. It is related to the length of the company's cash cycle. DuPont's five-factor decomposition does not include: Operating profit margin. V Effect of interest burden. Tax effect. ^ The length of the cash cycle. Choose the correct statement: The profit margin can also be understood as a competitive constraint. Profit margin can also be understood as capacity and competitive constraint. Asset turnover can also be understood as a capacity and competitive constraint. Asset turnover can also be understood as a competitive constraint. A D 8 Choose the correct statement: Financial leverage is always positive. K Financial leverage can equal to 0.5. We classify financial leverage as an indicator of indebtedness. If financial leverage is equal to 1, it means that the firm uses only debt for financing. EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at<£4%). The yield on US government bonds is 5.5%. What is thejnini-mum acceptable rate of return for the planned pro- ject? & 14%. B 5.5%. C 19.5%. D 8.5%. A B ©> D Choose which of the firm's decision is an investment decision. Purchase of bonds. Issue of shares. Purchase of a business plant. Reinvestment of profit. 10 B C D If the value of financial leverage is 2.4, it implies that: Liabilities > Equity. Liabilities = Equity. Assets = Equity. Liabilities < Equity. 11 B C D If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. This is probably a capital-intensive company. We are unable to determine a kind of business. This is probably a monopoly. 12 A ® C D The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? Further debt financing would have a positive effect on ROE (positive leverage effect). Further debt financing would have a negative effect on ROE (negative leverage effect). T-o/\ < a. It is possible to estimate the effect on ROA, not ROE. It is not possible to determine the effect on ROE. MPF AFAP: 1st test Zadani c. 35 13 Choose the incorrect statement regarding financial planning: Predictions in financial planning are always uncertain. The simplest prediction method is based on sales prediction. Predictions in financial planning are very accurate. Creating a financial plan requires a thorough knowledge of the company based on financial analysis. If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. 15 The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? 19.2% 12.8% 20% 36% MPFAFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání 21 The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? A- Further debt financing would have a positive effect on ROE (positive leverage effect). B Further debt financing would have a negative effect on ROE (negative leverage effect). C It is possible to estimate the effect on ROA, not ROE. D It is not possible to determine the effect on ROE. 2 Choose the correct statement: A The profit margin can also be understood as a competitive constraint. ^( Profit margin can also be understood as capacity and competitive constraint. c Asset turnover can also be understood as a capacity and competitive constraint. D Asset turnover can also be understood as a competitive constraint. A vB c D A .B c D If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. What should be the main goal of a corporation? Maximizing the company's profit. Maximizing company value. Maximizing project activities. Cost minimization in any case. 5 Select the incorrect statement regarding asset turnover. The higher the value of the indicator, the higher the ROA and the lower the ROE. B This is a determinant of company growth. c The higher the value of the indicator, the higher the ROA and ROE. D It is related to the length of the company's cash cycle. A B c JO Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. 9.17% .. 6.38% 5.93% 4.17% [ 7 I Choose which of the firm's decision is an investment decision. A Purchase of bonds. B Issue of shares. Purchase of a business plant. D Reinvestment of profit. 8 A B c ■A) EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? 14%. 5.5%. 19.5%. 8.5%. Choose the correct statement: A Financial leverage is always positive. B Financial leverage can equal to 0.5. nS?*-" We classify financial leverage as an indicator of indebtedness. D If financial leverage is equal to 1, it means that the firm uses only debt for financing. 10 A B If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. This is probably a capital-intensive company. We are unable to determine a kind of business. This is probably a monopoly. 11 If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? A The interest coverage ratio will not change. B The interest coverage ratio will increase. c The interest coverage ratio will decrease. D Interest rate changes are not included in the indicator. 12 A B c D If the value of financial leverage is 2.4, it implies that: Liabilities > Equity. Liabilities = Equity. Assets = Equity. Liabilities < Equity. MPF AFAP: 1st test Zadani c. 21 13 The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? a 19.2% •©^ 12.8% c 20% d 36% 14 DuPont's five-factor decomposition does not include-. a Operating profit margin. ^ Effect of interest burden. c Tax effect. d The length of the cash cycle. 15 Choose the incorrect statement regarding financial planning: a Predictions in financial planning are always uncertain. b The simplest prediction method is based on sales prediction. Equity. b Liabilities = Equity. c Assets = Equity. d Liabilities < Equity. 14 The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? a 19.2% 12.8% (£) 20% d 36% 15 Select the incorrect statement regarding asset turnover. /a) The higher the value of the indicator, the higher the " ROA and the lower the ROE. Ng) This is a determinant of company growth. c The higher the value of the indicator, the higher the ROA and ROE. d It is related to the length of the company's cash cycle. MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zaclání OqáImicl Rakrna^ ptizkxx 23 | 11 Choose the correct statement: a The profit margin can also be understood as a competitive constraint. b Profit margin can also be understood as capacity and competitive constraint. c Asset turnover can also be understood as a capacity and competitive constraint. d Asset turnover can also be understood as a competitive constraint. Choose the correct statement: Financial leverage is always positive. b Financial leverage can equal to 0.5. ROE = We classify financial leverage as an indicator of in- = 400. debtedness. 9.17% d If financial leverage is equal to 1, it means that the b 6.38% firm uses only debt for financing. c 5.93% B 4.17% a b c Ä) a b or d a b c d DuPont's five-factor decomposition does not include: Operating profit margin. Effect of interest burden. Tax effect. The length of the cash cycle. If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? The interest coverage ratio will not change. The interest coverage ratio will increase. The interest coverage ratio will decrease. Interest rate changes are not included in the indicator. EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? 14%. 5.5%. 19.5%. 8.5%. HI b c d Select the incorrect statement regarding asset turnover. The higher the value of the indicator, the higher the ROA and the lower the ROE. This is a determinant of company growth. The higher the value of the indicator, the higher the ROA and ROE. It is related to the length of the company's cash cycle. Determine the company's sustainable growth rate if you know the following information: ROA = 10%, 8 a C d If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit mar- gin? a 19.2% b 12.8% Equity. Liabilities = Equity. Assets = Equity. Liabilities < Equity. 15 a b d Choose which of the firm's decision is an investment decision. Purchase of bonds. Issue of shares. Purchase of a business plant. Reinvestment of profit. \ MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání Aye Jim M/ai 55G305 22 A B C D A B C D 3^ A B D A B C D B D A B C D Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. 9.17% 6.38% 5.93% 4.17% If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. Choose the correct statement: The profit margin can also be understood as a competitive constraint. Profit margin can also be understood as capacity and competitive constraint. Asset turnover can also be understood as a capacity and competitive constraint. Asset turnover can also be understood as a competitive constraint. If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. This is probably a capital-intensive company. We are unable to determine a kind of business. This is probably a monopoly. The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? Further debt financing would have a positive effect on ROE (positive leverage effect). Further debt financing would have a negative effect on ROE (negative leverage effect). It is possible to estimate the effect on ROA, not ROE. It is not possible to determine the effect on ROE. Choose the correct statement: Financial leverage is always positive. Financial leverage can equal to 0.5. We classify financial leverage as an indicator of indebtedness. If financial leverage is equal to 1, it means that the firm uses only debt for financing. B C D 8 A B C D 10 A B C D 11 A B C D 12 A B C D Choose the incorrect statement regarding financial planning: Predictions in financial planning are always uncertain. The simplest prediction method is based on sales prediction. Predictions in financial planning are very accurate. Creating a financial plan requires a thorough knowledge of the company based on financial analysis. If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? The interest coverage ratio will not change. The interest coverage ratio will increase. The interest coverage ratio will decrease. Interest rate changes are not included in the indicator. 9 If the value of financial leverage is 2.4, it implies that: A Liabilities > Equity. B Liabilities = Equity. C Assets = Equity. D Liabilities < Equity. Choose which of the firm's decision is an investment decision. Purchase of bonds. Issue of shares. Purchase of a business plant. Reinvestment of profit. EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? 14%. 5.5%. 19.5%. 8.5%. The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? 19.2% 12.8% 20% 36% MPF AFAP: 1st test Zadani c. 22 13 DuPont's five-factor decomposition does not include: A Operating profit margin. b Effect of interest burden. c Tax effect. d The length of the cash cycle. 14 Select the incorrect statement regarding asset turnover. A The higher the value of the indicator, the higher the ROA and the lower the ROE. b This is a determinant of company growth. c The higher the value of the indicator, the higher the ROA and ROE. d It is related to the length of the company's cash cycle. 15 What should be the main goal of a corporation? A Maximizing the company's profit. b Maximizing company value. c Maximizing project activities. d Cost minimization in any case. MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání >ú bind PrMlíLija, 38 [ 11 Choose the incorrect statement regarding financial planning: A Predictions in financial planning are always uncertain. b The simplest prediction method is based on sales prediction. (0/ Predictions in financial planning are very accurate. d Creating a financial plan requires a thorough knowledge of the company based on financial analysis. 2 The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? A Further debt financing would have a positive effect on ROE (positive leverage effect). (b Further debt financing would have a negative effect " on ROE (negative leverage effect). c It is possible to estimate the effect on ROA, not ROE. d It is not possible to determine the effect on ROE. If the value of financial leverage is 2.4, it implies that: Liabilities > Equity. \ fV b Liabilities = Equity. ~~~ c Assets = Equity. d Liabilities < Equity. 4 What should be the main goal of a corporation? A Maximizing the company's profit. Maximizing company value. c Maximizing project activities. d Cost minimization in any case. 5 If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. A The principle of multiplication. ^b) The principle of comparative advantage. c The principle of materiality. d The principle of absolute advantage. b d Select the incorrect statement regarding asset turnover. The higher the value of the indicator, the higher the ROA and the lower the ROE. This is a determinant of company growth. The higher the value of the indicator, the higher the ROA and ROE. It is related to the length of the company's cash cycle. A b d A b d 11 12 Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. 9.17% Jj^JU 6.38% 5.93% 4.17% Q^ 8 EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned pro- ject? A 14%. b 5.5%. c 19.5%. 11 8.5%. Choose which of the firm's decision is an investment decision. Purchase of bonds. Issue of shares. Purchase of a business plant. Reinvestment of profit. 10 If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? A The interest coverage ratio will not change. b The interest coverage ratio will increase. ^JP The interest coverage ratio will decrease. d Interest rate changes are not included in the indicator. The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit mar- gin? A 19.2% b 12.8% 4p 20% d 36% If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. b This is probably a capital-intensive company. c We are unable to determine a kind of business. d This is probably a monopoly. MPF AFAP: 1st test Zadani c. 38 13 Choose the correct statement: A Financial leverage is always positive. ^b} Financial leverage can equal to 0.5. c We classify financial leverage as an indicator of indebtedness. d If financial leverage is equal to 1, it means that the firm uses only debt for financing. 14 DuPont's five-factor decomposition does not include: A Operating profit margin. b Effect of interest burden. c Tax effect. (t)P The length of the cash cycle. 15 Choose the correct statement: A The profit margin can also be understood as a competitive constraint. Profit margin can also be understood as capacity and competitive constraint. c Asset turnover can also be understood as a capacity and competitive constraint. d Asset turnover can also be understood as a competitive constraint. MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání 39 | 1 I EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? vA/"l4%. B 5.5%. C 19.5%. D 8.5%. B C D B B D If the value of financial leverage is 2.4, it implies Jhat: Liabilities > Equity. Liabilities = Equity. Assets = Equity. Liabilities < Equity. Choose the correct statement: A Financial leverage is always positive. B /Financial leverage can equal to 0.5. y We classify financial leverage as an indicator of indebtedness. D If financial leverage is equal to 1, it means that the firm uses only debt for financing. D The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? Further debt financing would have a positive effect on ROE (positive leverage effect). Further debt financing would have a negative effect on ROE (negative leverage effect). It is possible to estimate the effect on ROA, not (OE. It is not possible to determine the effect on ROE. Select the incorrect statement regarding asset turner. The higher the value of the indicator, the higher the ROA and the lower the ROE. is is a determinant of company growth. The higher the value of the indicator, the higher the ROA and ROE. It is related to the length of the company's cash cycle. Choose which of the firm's decision is an investment decision. Purchase of bonds, ssue of shares. Purchase of a business plant. Reinvestment of profit. | 7 | DuPont's five-factor decomposition does not include: A Operating profit margin. B Effect of interest burden. C Tax effect. ^ p/The length of the cash cycle. 8 Choose the incorrect statement regarding financial planning: Predictions in financial planning are always uncertain. B The simplest prediction method is based on sales rediction. Predictions in financial planning are very accurate. Creating a financial plan requires a thorough knowledge of the company based on financial analysis. D 10 11 12 The profit margin can also be understood as a com- 9 Choose the correct statement /fSetitive constraint. Profit margin can also be understood as capacity and competitive constraint. C Asset turnover can also be understood as a capacity and competitive constraint. D Asset turnover can also be understood as a competitive constraint. If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? The interest coverage ratio will not change. e interest coverage ratio will increase. The interest coverage ratio will decrease. D Interest rate changes are not included in the indicator. If asset turnover ratio equals to 1.5, what kind of company it probably is. his is probably a service providing company. This is probably a capital-intensive company. C We are unable to determine a kind of business. D This is probably a monopoly. Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit 5-400. 9.17% B 6.38% C 5.93% D 4.17% MPF AFAP: 1st test Zadani c. 39 13 If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. 14 c D What should be the main goal of a corporation? aximizing the company's profit. Maximizing company value. Maximizing project activities. Cost minimization in any case. 15 d The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? 19.2% ■2.8% 20% 36% MPFAFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání 5 3 3 3 £, (y 42 B D A B C D A B C D B C D J5 A B D B C D The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? Further debt financing would have a positive effect on ROE (positive leverage effect). ' Further debt financing would have a negative effect on ROE (negative leverage effect). * • It is possible to estimate the effect on ROA, not ROE. It is not possible to determine the effect on ROE. What should be the main goal of a corporation? Maximizing the company's profit. Maximizing company value. Maximizing project activities. Cost minimization in any case. If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. This is probably a capital-intensive company. We are unable to determine a kind of business. This is probably a monopoly. Choose the incorrect statement regarding financial planning: Predictions in financial planning are always uncertain. The simplest prediction method is based on sales prediction. Predictions in financial planning are very accurate. Creating a financial plan requires a thorough knowledge of the company based on financial analysis. Choose the correct statement: The profit margin can also be understood as a competitive constraint. Profit margin can also be understood as capacity and competitive constraint. Asset turnover can also be understood as a capacity and competitive constraint. Asset turnover can also be understood as a competitive constraint. Select the incorrect statement regarding asset turnover. The higher the value of the indicator, the higher the ROA and the lower the ROE. This is a determinant of company growth/ The higher the value of the indicator, the higher the ROA and ROE. It is related to the length of the company's cash cycle. A B C D 8 A B C D 9 10 A B C D 11 A B C D 12 A B C D Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. 9.17% 6.38% 5.93% 4.17% If the value of financial leverage is 2.4, it implies that: Liabilities > Equity. Liabilities = Equity. Assets = Equity. Liabilities < Equity. The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit mar- gin? A 19.2% B 12.8% C 20% D 36% Choose which of the firm's decision is an investment decision. Purchase of bonds. Issue of shares. Purchase of a business plant. Reinvestment of profit. If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. Choose the correct statement: Financial leverage is always positive. Financial leverage can equal to 0.5. We classify financial leverage as an indicator of indebtedness. If financial leverage is equal to 1, it means that the firm uses only debt for financing. MPF AFAP: 1st test Zadani c. 42 13 EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? A 14%. b 5.5%. C 19.5%. d 8.5%. 14 A b C d DuPont's five-factor decomposition does not include: Operating profit margin. Effect of interest burden. Tax effect. The length of the cash cycle. 15 A b C d If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? The interest coverage ratio will not change. The interest coverage ratio will increase. The interest coverage ratio will decrease. Interest rate changes are not included in the indicator. MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Čfe/o zadání 44 | 11 Select the incorrect statement regarding asset turnover. A The higher the value of the indicator, the higher the ROA and the lower the ROE. jf This is a determinant of company growth. C The higher the value of the indicator, the higher the ROA and ROE. D It is related to the length of the company's cash cycle. B C D What should be the main goal of a corporation? Maximizing the company's profit. Maximizing company value. Maximizing project activities. Cost minimization in any case. 3 Choose the correct statement: A The profit margin can also be understood as a competitive constraint. B Profit margin can also be understood as capacity and competitive constraint. pf Asset turnover can also be understood as a capacity and competitive constraint. D Asset turnover can also be understood as a competitive constraint. If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. A The principle of multiplication. /B/< The principle of comparative advantage. C The principle of materiality. D The principle of absolute advantage. [~5~| Choose the incorrect statement regarding financial planning: Ac Predictions in financial planning are always uncertain. B The simplest prediction method is based on sales prediction. C Predictions in financial planning are very accurate. D Creating a financial plan requires a thorough knowledge of the company based on financial analysis. A B D The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? 19.2% 12.8% 20% 36% m Choose which of the firm's decision is an investment decision. A Purchase of bonds. B Issue of shares. C Purchase of a business plant. jy Reinvestment of profit. 8 B D The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? Further debt financing would have a positive effect on ROE (positive leverage effect). Further debt financing would have a negative effect on ROE (negative leverage effect). It is possible to estimate the effect on ROA, not ROE. It is not possible to determine the effect on ROE. 9 If asset turnover ratio equals to 1.5, what kind of company it probably is. A , This is probably a service providing company. This is probably a capital-intensive company. C We are unable to determine a kind of business. D This is probably a monopoly. 10 Choose the correct statement: A Financial leverage is always positive. B Financial leverage can equal to 0.5. fC We classify financial leverage as an indicator of indebtedness. D If financial leverage is equal to 1, it means that the firm uses only debt for financing. 11 Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400 A 9.17% B 6.38% C 5.93% D 4.17% 12 DuPont's five-factor decomposition does not include: A Operating profit margin. B Effect of interest burden. Tax effect. D The length of the cash cycle. 13 If the value of financial leverage is 2.4, it implies that: Liabilities > Equity. B Liabilities = Equity. C Assets = Equity. D Liabilities < Equity. MPF AFAP: 1st test Zadam c. 44 14 If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? The interest coverage ratio will not change. The interest coverage ratio will increase. The interest coverage ratio will decrease. Interest rate changes are not included in the indicator. 15 EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? A 14%. b 5.5%. jef 19.5%. D 8.5%. MPFAFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání £L(6 2S^ 43 [ 1 [ Select the incorrect statement regarding asset turnover. A The higher the value of the indicator, the higher the ROA and the lower the ROE. b This is a determinant of company growth. C The higher the value of the indicator, the higher the ROA and ROE. d It is related to the length of the company's cash cycle. A b C d A b C d A b C d A b C d If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. This is probably a capital-intensive company. We are unable to determine a kind of business. This is probably a monopoly. Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400 A 9.17% b 6.38% C 5.93% d 4.17% What should be the main goal of a corporation? Maximizing the company's profit. Maximizing company value. Maximizing project activities. Cost minimization in any case. The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? 19.2% 12.8% 20% 36% If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. 7_ A b d 8 b d Choose the correct statement: The profit margin can also be understood as a competitive constraint. Profit margin can also be understood as capacity and competitive constraint. Asset turnover can also be understood as a capacity and competitive constraint. Asset turnover can also be understood as a competitive constraint. The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? Further debt financing would have a positive effect on ROE (positive leverage effect). Further debt financing would have a negative effect on ROE (negative leverage effect). It is possible to estimate the effect on ROA, not ROE. It is not possible to determine the effect on ROE. |~9~| If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? A The interest coverage ratio will not change. b The interest coverage ratio will increase. C The interest coverage ratio will decrease. d Interest rate changes are not included in the indicator. 10 Choose the incorrect statement regarding financial planning: A Predictions in financial planning are always uncertain. b The simplest prediction method is based on sales prediction. C Predictions in financial planning are very accurate. d Creating a financial plan requires a thorough knowledge of the company based on financial analysis. 11 If the value of financial leverage is 2.4, it implies that: A Liabilities > Equity. b Liabilities = Equity. C Assets = Equity. d Liabilities < Equity. MPF AFAP: 1st test Zadani c. 43 12 Choose the correct statement: A Financial leverage is always positive. b Financial leverage can equal to 0.5. C We classify financial leverage as an indicator of indebtedness. d If financial leverage is equal to 1, it means that the firm uses only debt for financing. 13 Choose which of the firm's decision is an investment decision. A Purchase of bonds. b Issue of shares. C Purchase of a business plant. d Reinvestment of profit. 14 EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? A 14%. b 5.5%. C 19.5%. d 8.5%._ 15 DuPont's five-factor decomposition does not include: A Operating profit margin. b Effect of interest burden. C Tax effect. d The length of the cash cycle. MPFAFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání 45 | 11 Choose the incorrect statement regarding financial planning: A Predictions in financial planning are always uncertain. B The simplest prediction method is based on sales prediction. C Predictions in financial planning are very accurate. D Creating a financial plan requires a thorough knowledge of the company based on financial analysis. 2 Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. A 9.17% B 6.38% C 5.93% D 4.17% If asset turnover ratio equals to 1.5, what kind of company it probably is. A This is probably a service providing company. B This is probably a capital-intensive company. C We are unable to determine a kind of business. D This is probably a monopoly. 4 Choose the correct statement: A The profit margin can also be understood as a competitive constraint. B Profit margin can also be understood as capacity and competitive constraint. C Asset turnover can also be understood as a capacity and competitive constraint. D Asset turnover can also be understood as a competitive constraint. Select the incorrect statement regarding asset turnover. A The higher the value of the indicator, the higher the ROA and the lower the ROE. B This is a determinant of company growth. C The higher the value of the indicator, the higher the ROA and ROE. D It is related to the length of the company's cash cycle. 6 If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. A The principle of multiplication. B The principle of comparative advantage. C The principle of materiality. D The principle of absolute advantage. | 7 | If the value of financial leverage is 2.4, it implies that: A Liabilities > Equity. B Liabilities = Equity. C Assets = Equity. D Liabilities < Equity. 8 The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit mar- gin? A 19.2% B 12.8% C 20% D 36% What should be the main goal of a corporation? A Maximizing the company's profit. B Maximizing company value. C Maximizing project activities. D Cost minimization in any case. 10 DuPont's five-factor decomposition does not include: A Operating profit margin. B Effect of interest burden. C Tax effect. D The length of the cash cycle. 11 A B C D 12 A B C D EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? 14%. 5.5%. 19.5%. 8.5%. Choose which of the firm's decision is an investment decision. Purchase of bonds. Issue of shares. Purchase of a business plant. Reinvestment of profit. MPF AFAP: 1st test Zadani c. 45 13 The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? a Further debt financing would have a positive effect on ROE (positive leverage effect). b Further debt financing would have a negative effect on ROE (negative leverage effect). C It is possible to estimate the effect on ROA, not ROE. d It is not possible to determine the effect on ROE. 14 Choose the correct statement: a Financial leverage is always positive. b Financial leverage can equal to 0.5. C We classify financial leverage as an indicator of indebtedness. d If financial leverage is equal to 1, it means that the firm uses only debt for financing. 15 If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? a The interest coverage ratio will not change. b The interest coverage ratio will increase. C The interest coverage ratio will decrease. d Interest rate changes are not included in the indicator. MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání fan** 37 | 1 | Choose which of the firm's decision is an investment decision. A Purchase of bonds. B Issue of shares. __C_ Purchase of a business plant. D Reinvestment of profit. 2 If the value of financial leverage is 2.4, it implies that: Liabilities > Equity. Liabilities = Equity. 'C Assets = Equity. D Liabilities < Equity. B D A C D Choose the correct statement: The profit margin can also be understood as a competitive constraint. Profit margin can also be understood as capacity and competitive constraint. Asset turnover can also be understood as a capacity and competitive constraint. Asset turnover can also be understood as a competitive constraint. What should be the main goal of a corporation? Maximizing the company's profit. Maximizing company value. Maximizing project activities. Cost minimization in any case. B D Select the incorrect statement regarding asset turnover. The higher the value of the indicator, the higher the ROA and the lower the ROE. This is a determinant of company growth. The higher the value of the indicator, the higher the ROA and ROE. It is related to the length of the company's cash cycle. Determine the company's sustainable growth rate if you know the following information: ROA = 10%, A B _£ D ROE = 14%, EAT = 1000, Payout portion of profit = 400.- - , 6.38% 5.93% 4.17% B D The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? Further debt financing would have a positive effect on ROE (positive leverage effect). Further debt financing would have a negative effect on ROE (negative leverage effect). It is possible to estimate the effect on ROA, not ROE. It is not possible to determine the effect on ROE. 8 A B J- D A B C D 10 A B D 11 B C D Choose the correct statement: Financial leverage is always positive. Financial leverage can equal to 0.5. We classify financial leverage as an indicator of indebtedness. If financial leverage is equal to 1, it means that the firm uses only debt for financing. DuPont's five-factor decomposition does not include: Operating profit margin. Effect of interest burden. Tax effect. The length of the cash cycle. If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? The interest coverage ratio will not change. The interest coverage ratio will increase. The interest coverage ratio will decrease. Interest rate changes are not included in the indicator. EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned pro- ject? L Jx -< 14%. bWlA, -2 5.5%. 19.5%. 8.5%. 12 -A. B C D If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. This is probably a capital-intensive company. We are unable to determine a kind of business. This is probably a monopoly. MPF AFAP: 1st test Zadani c. 37 13 If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. A The principle of multiplication. B The principle of comparative advantage. C The principle of materiality. D The principle of absolute advantage. 14 A B D The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? 19.2% 12.8%_ ? 20%~~ 36% 15 B D Choose the incorrect statement regarding financial planning: Predictions in financial planning are always uncertain. The simplest prediction method is based on sales prediction. Predictions in financial planning are very accurate. Creating a financial plan requires a thorough knowledge of the company based on financial analysis. MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání 46 If the value of financial leverage is 2.4, it implies that: A Liabilities > Equity. b Liabilities = Equity. C Assets = Equity. d Liabilities < Equity. 2 What should be the main goal of a corporation? A Maximizing the company's profit. b Maximizing company value. C Maximizing project activities. d Cost minimization in any case. 3 Choose the incorrect statement regarding financial planning: A Predictions in financial planning are always uncertain^ b The simplest prediction method is based on sales prediction. C Predictions in financial planning are very accurate. d Creating a financial plan requires a thorough knowledge of the company based on financial analysis. 4 Choose which of the firm's decision is an investment decision. A Purchase of bonds. b Issue of shares. C Purchase of a business plant, e- d Reinvestment of profit, 6 The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? A Further debt financing would have a positive effect on ROE (positive leverage effect). b Further debt financing would have a negative effect on ROE (negative leverage effect). C It is possible to estimate the effect on ROA, not ROE. d It is not possible to determine the effect on ROE. Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. A 9.17% b 6.38% C 5.93% « d 4.17% The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? A 19.2% b 12.8% C 20% o d 36% 8 Choose the correct statement: A The profit margin can also be understood as a competitive constraint. b Profit margin can also be understood as capacity and competitive constraint. C Asset turnover can also be understood as a capacity and competitive constraint. d Asset turnover can also be understood as a competitive constraint. EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? A 14%.» b 5.5%. C 19.5%. d 8.5%. 10 A b C d If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. § The principle of absolute advantage. 11 Choose the correct statement: A Financial leverage is always positive. b Financial leverage can equal to 0.5. C We classify financial leverage as an indicator of indebtedness. d If financial leverage is equal to 1, it means that the firm uses only debt for financing, j MPF_AFAP: 1st test Zadäni c. 46 | 12 [ Select the incorrect statement regarding asset turnover. A The higher the value of the indicator, the higher the ROA and the lower the ROE. b This is a determinant of company growth.4? C The higher the value of the indicator, the higher the ROA and ROE. d It is .related to the length of the company's cash cyc\L. A b C d If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. • This is probably a capital-intensive company. We are unable to determine a kind of business. This is probably a monopoly. 14 A b C d If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? The interest coverage ratio will not change. The interest coverage ratio will increase* The interest coverage ratio will decrease. Interest rate changes are not included in the indicator. 15 A b C d DuPont's five-factor decomposition does not include: Operating profit margin. Effect of interest burden. Tax effect. The length of the cash cycle. MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadaní ßoi+u N\ B PI l/AS U bin 41 |~l] Choose the incorrect statement regarding financial planning: Predictions in^Joancial planning are always uncertain. . B The simplest prediction method is based on sales prediction. Predictions in financial planning are very accurate. D Creating a financial plan requires a thorough knowledge of the company based on financial analysis. Choose which of the firm's decision is an investment decision. A Purchase of bonds. B Issue of shares. "C\ Purchase of a business plant."^ w Reinvestment of profit. D AS If a company has debt with both fixed and floating/ interest rate, what effect will a general rise in-intel rest rates in the economy have on themterest < verage ratio? The interest coverage ratio will not change. The interest coverage ratio will increase. The interest coverage ratio will decrease. Interest rate changes are not included in the indicator. [~JT| If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. B This is probably a capital-intensive company. C We are unable to determine a kind of business. D This is probably a monopoly. ^B> C D A n c D What should be the main goal of a corporation? Maximizing the company's profit. Maximizing company value. Maximizing project activities. Cost minimization in any case. If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. ^ 0 •J -B © D EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated^at 14%. The yield on US government bonds is ^5^1. What is the minimum acceptable rate of return for the planned project? JA%. 19.5%. -8.5%>. - | 8 | If the value of financial leverage is 2.4, it implies that: ~)0 Liabilities > Equity. n$k I 4j H B Liabilities = Equity. C Assete"= Equity. D Liabilities < Equity. 1 hoose the correct statement: D Financial leverage is always positive. .J^J . Financial leverage can equal to 0.5. .^f- I J%— We classify financial leverage as an indicator of indebtedness. If financial leveracjie^s equal to 1, it means that the firm uses only debt/fms financing. 10 A B C (5> DuPont's five-factor decomposition does not include: Operatiiig^rofit margin. Effect ofJjiterest burden. Tax effect. The length of the cash cycle. li The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit mar- 12 D Select the incorrect statement regarding asset turnover. The higher the value of the indicator, the higher the ROA and the lower the ROE. This is a determinant of company growth. The higher the value of the indicator, the higher the ROA and Rdi. It is rebftecl to the length of the company's cash cycle./ MPF_AFAP: 1st test Zadani c. 41 13 B D 14 B D 15 The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? Further debt financing would have a positive effect on ROE (positive leverage effect). Further debt financing would have a negative effect on ROE (negative leverage effect). It is possible to estimate the effect on ROA, not ROE. It is not possible to determine the effect on ROE. Choose the correct statement: The profit margin can also be understood as a competitive constraint. Profit margin can also be understood as capacity and competitive constraint. Asset turnover can also be understood as a capacity and competitive constraint. Asset turnover can also be understood as a competitive constraint. Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400 A 9.17% B 6.38% c 5.93% D 4.17% 1 k0O 7 fU/C7 MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání 5L( 6X2 ) 31 | 11 If asset turnover ratio equals to 1.5, what kind of company it probably is. A This is probably a service providing company. B This is probably a capital-intensive company. C We are unable to determine a kind of business. D This is probably a monopoly. A B D 2 EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? A 14%. B 5.5%. C 19.5%. /D 8.5%. The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? 19.2% 12.8% 20% 36% 4 Choose the correct statement: A The profit margin can also be understood as a competitive constraint. B Profit margin can also be understood as capacity and competitive constraint. C Asset turnover can also be understood as a capacity and competitive constraint. D Asset turnover can also be understood as a competitive constraint. 5 Choose the incorrect statement regarding financial planning: A Predictions in financial planning are always uncertain. B The simplest prediction method is based on sales prediction. C Predictions in financial planning are very accurate. D Creating a financial plan requires a thorough knowledge of the company based on financial analysis. If the value of financial leverage is 2.4, it implies that: A Liabilities > Equity. B Liabilities = Equity. C Assets = Equity. D Liabilities < Equity. Choose which of the firm's decision is an investment decision. A Purchase of bonds. B Issue of shares. -C Purchase of a business plant. D Reinvestment of profit. 8 DuPont's five-factor decomposition does not include: A Operating profit margin. B Effect of interest burden. C Tax effect. D The length of the cash cycle. 11 B C D 12 A -B C D Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. A 9.17% ' B 6.38% C 5.93% D 4.17% 10 The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? "A Further debt financing would have a positive effect on ROE (positive leverage effect). B Further debt financing would have a negative effect on ROE (negative leverage effect). C It is possible to estimate the effect on ROA, not ROE. D It is not possible to determine the effect on ROE. Select the incorrect statement regarding asset turnover. The higher the value of the indicator, the higher the ROA and the lower the ROE. This is a determinant of company growth. The higher the value of the indicator, the higher the ROA and ROE. It is related to the length of the company's cash cycle. If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. MPF AFAP: 1st test Zadani c. 31 13 If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? A The interest coverage ratio will not change. b The interest coverage ratio will increase. The interest coverage ratio will decrease. d Interest rate changes are not included in the indi-_cator._ 14 What should be the main goal of a corporation? A Maximizing the company's profit. ✓ b Maximizing company value. C Maximizing project activities. d Cost minimization in any case. 15 Choose the correct statement: A Financial leverage is always positive. b Financial leverage can equal to 0.5. ,,-C We classify financial leverage as an indicator of indebtedness. d If financial leverage is equal to 1, it means that the firm uses only debt for financing. Equity. b Liabilities = Equity. c Assets = Equity. d Liabilities < Equity. 12 a ® c d Choose which of the firm's decision is an investment decision. Purchase of bonds. Issue of shares. Purchase of a business plant. Reinvestment of profit. 8 Choose the correct statement: a Financial leverage is always positive. b Financial leverage can equal to 0.5. cT\ We classify financial leverage as an indicator of indebtedness. d If financial leverage is equal to 1, it means that the firm uses only debt for financing. If asset turnover ratio equals to 1.5, what kind of company it probably is. (a \ This is probably a service providing company. b This is probably a capital-intensive company. c We are unable to determine a kind of business. d This is probably a monopoly. 10 Choose the incorrect statement regarding financial planning: a Predictions in financial planning are always uncertain. b The simplest prediction method is based on sales prediction. (c^) Predictions in financial planning are very accurate. d Creating a financial plan requires a thorough knowledge of the company based on financial analysis. 11 Choose the correct statement: f aA The profit margin can also be understood as a com-^ petitive constraint. b Profit margin can also be understood as capacity and competitive constraint. c Asset turnover can also be understood as a capacity and competitive constraint. d Asset turnover can also be understood as a competitive constraint. If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. MPF AFAP: 1st test Zadani c. 40 13 Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. A 9.17% (BJ 6.38% C 5.93% D 4.17% 14 What should be the main goal of a corporation? A Maximizing the company's profit. (BJ Maximizing company value. C Maximizing project activities. D Cost minimization in any case. 15 EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? A) 14%. B 5.5%. C 19.5%. D 8.5%. MPFAFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání Kí/Í ko^V^ ftl^v^M^ 30 Choose which of the firm's decision is an investment decision. A Purchase of bonds. B Issue of shares. /Cp Purchase of a business plant. 1) Reinvestment of profit. 2 Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. §> 9.17% B 6.38% c 5.93% D 4.17% 3 If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. A The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. c D 4 The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? ^A) Further debt financing would have a positive effect on ROE (positive leverage effect). B Further debt financing would have a negative effect on ROE (negative leverage effect). c It is possible to estimate the effect on ROA, not ROE. D It is not possible to determine the effect on ROE. 5 If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? A The interest coverage ratio will not change. B The interest coverage ratio will increase. © The interest coverage ratio will decrease. D Interest rate changes are not included in the indicator. A B D The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? 19.2% 12.8% 20% 36% 7 DuPont's five-factor decomposition does not include: A Operating profit margin. B Effect of interest burden. c Tax effect. (J5 The length of the cash cycle. 8 Choose the correct statement: A The profit margin can also be understood as a competitive constraint. B Profit margin can also be understood as capacity and competitive constraint. ^ Asset turnover can also be understood as a capacity and competitive constraint. D Asset turnover can also be understood as a competitive constraint. 9 Choose the correct statement: A Financial leverage is always positive. B Financial leverage can equal to 0.5. (O We classify financial leverage as an indicator of indebtedness. D If financial leverage is equal to 1, it means that the firm uses only debt for financing. 10 A B c e li & B c D 12 c D EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? 14%. 5.5%. 19.5%. 8.5%. If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. This is probably a capital-intensive company. We are unable to determine a kind of business. This is probably a monopoly. What should be the main goal of a corporation? Maximizing the company's profit. Maximizing company value. Maximizing project activities. Cost minimization in any case. MPF AFAP: 1st test Zadani c. 30 13 Choose the incorrect statement regarding financial planning: lA' Predictions in financial planning are always uncertain. B The simplest prediction method is based on sales prediction. C Predictions in financial planning are very accurate. D Creating a financial plan requires a thorough knowledge of the company based on financial analysis. 14 If the value of financial leverage is 2.4, it implies that: A Liabilities > Equity. B Liabilities = Equity. C Assets = Equity. Liabilities < Equity. 15 Select the incorrect statement regarding asset turnover. A The higher the value of the indicator, the higher the ROA and the lower the ROE. B This is a determinant of company growth. <£ The higher the value of the indicator, the higher the ROA and ROE. D It is related to the length of the company's cash cycle. MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání K V 6Z?C 19 B c D If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? The interest coverage ratio will not change. The interest coverage ratio will increase. The interest coverage ratio will decrease. Interest rate changes are not included in the indicator. The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? 19.2% 12.8% 20% 36% A B Choose which of the firm's decision is an investment decision. Purchase of bonds. Issue of shares. Purchase of a business plant. Reinvestment of profit. 1A B The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? Further debt financing would have a positive effect on ROE (positive leverage effect). Further debt financing would have a negative effect on ROE (negative leverage effect). It is possible to estimate the effect on ROA, not ROE. It is not possible to determine the effect on ROE. B Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE.= 14%, EAT = 1000, Payout portion of profit = 400. . ^ (oOO 9.17% 6.38% 5.93% 4.17% EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? 14%. 5.5%. 19.5%. \ 8.5%. _j_ Choose the correct statement: Financial leverage is always positive. Financial leverage can equal to 0.5. We classify financial leverage as an indicator of indebtedness. If financial leverage is equal to 1, it means that the firm uses only debt for financing. |~8~| Choose the incorrect statement regarding financial planning: ^) Predictions in financial planning are always uncertain. The simplest prediction method is based on sales prediction. c Predictions in financial planning are very accurate. Creating a financial plan requires a thorough knowledge of the company based on financial analysis. 0 B c D 9 If the value of financial leverage is 2.4, it implies that: (a) Liabilities > Equity. Liabilities = Equity. J& Assets = Equity. D Liabilities < Equity. 10 B D 11 Choose the correct statement: The profit margin can also be understood as a competitive constraint. Profit margin can also be understood as capacity and competitive constraint. Asset turnover can also be understood as a capacity and competitive constraint. Asset turnover can also be understood as a competitive constraint. If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. This is probably a capital-intensive company. We are unable to determine a kind of business. This is probably a monopoly. MPF AFAP: 1st test Zadani c. 19 12 What should be the main goal of a corporation? ^Al^ Maximizing the company's profit. @ Maximizing company value. >€T Maximizing project activities, •ir Cost minimization in any case. 13 C 14 A B C 15 Select the incorrect statement regarding asset turnover. The higher the value of the indicator, the higher the ROA and the lower the ROE. This is a determinant of company growth. The higher the value of the indicator, the higher the ROA and ROE. It is related to the length of the company's cash cycle. DuPont's five-factor decomposition does not include: Operating profit margin. Effect of interest burden. Tax effect. The length of the cash cycle. If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. The principle of multiplication. The principle of comparative advantage. The principle of materiality. The principle of absolute advantage. X MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání 27 1_ What should be the main goal of a corporation? A Maximizing the company's profit. Bf Maximizing company value. c Maximizing project activities. d Cost minimization in any case. 2 If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? A The interest coverage ratio will not change. b The interest coverage ratio will increase. c/' The interest coverage ratio will decrease. d Interest rate changes are not included in the indicator. 3 Choose the correct statement: A Financial leverage is always positive. b Financial leverage can equal to 0.5. c/ We classify financial leverage as an indicator of in- ■ debtedness. d If financial leverage is equal to 1, it means that the firm uses only debt for financing. 4 | The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? A Further debt financing would have a positive effect on ROE (positive leverage effect). b Further debt financing would have a negative effect on ROE (negative leverage effect). c It & possible to estimate the effect on ROA, not ROE. d It is not possible to determine the effect on ROE. 5 If asset turnover ratio equals to 1.5, what kind of company it probably is. A This is probably a service providing company. B/ This is probably a capital-intensive company. c We are unable to determine a kind of business. d This is probably a monopoly. Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. V 9.17% b 6.38% c 5.93% d 4.17% Choose which of the firm's decision is an investment decision. A Purchase of bonds. b Issue of shares. C/ Purchase of a business plant. d Reinvestment of profit. 8 If the value of financial leverage is 2.4, it implies that: Af Liabilities > Equity. b Liabilities = Equity. c Assets = Equity. d Liabilities < Equity. 9 If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. A The principle of multiplication. b The principle of comparative advantage. c The principle of materiality. The principle of absolute advantage. 10 A b d Choose the correct statement: The profit margin can also be understood as a competitive constraint. Profit margin can also be understood as capacity and competitive constraint. Asset turnover can also be understood as a capacity and competitive constraint. Asset turnover can also be understood as a competitive constraint. 11 Select the incorrect statement regarding asset turnover. A The higher the value of the indicator, the higher the ROA and the lower the ROE. b This is a determinant of company growth. The higher the value of the indicator, the higher the ' ROA and ROE. d It is related to the length of the company's cash cycle. 12 EL car corp. plans an investment project that will / expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? 14%. 5.5%. 19.5%. 8.5%. A c d MPF AFAP: 1st test Zadani c. 27 13 Choose the incorrect statement regarding financial planning: A Predictions in financial planning are always uncertain. B The simplest prediction method is based on sales prediction. C Predictions in financial planning are very accurate. By Creating a financial plan requires a thorough knowledge of the company based on financial analysis. 14 DuPont's five-factor decomposition does not include: A Operating profit margin. B Effect of interest burden. C Tax effect. Bv The length of the cash cycle. 15 The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? V 19.2% B 12.8% C 20% D 36% MPF AFAP: 1st test Jméno a příjmení - pište do okénka Učo Číslo zadání PJS2>3J- 18 | 1 I If a company has debt with both fixed and floating interest rate, what effect will a general rise in interest rates in the economy have on the interest coverage ratio? A The interest coverage ratio will not change. B The interest coverage ratio will increase. Qr The interest coverage ratio will decrease. D Interest rate changes are not included in the indicator. 2 Determine the company's sustainable growth rate if you know the following information: ROA = 10%, ROE = 14%, EAT = 1000, Payout portion of profit = 400. A 9.17% B 6.38% C /5.93% 4.17% [3| If asset turnover ratio equals to 1.5, what kind of company it probably is. This is probably a service providing company. This is probably a capital-intensive company. C We are unable to determine a kind of business. D This is probably a monopoly. 4 Choose which of the firm's decision is an investment decision. A Purchase of bonds. B Issue of shares. Purchase of a business plant. D Reinvestment of profit. 5 DuPont's five-factor decomposition does not include: A Operating profit margin. B Effect of interest burden. C Tax effect. D The length of the cash cycle. 6 What should be the main goal of a corporation? A Maximizing the company's profit. Maximizing company value. C Maximizing project activities. D Cost minimization in any case. [7] The company's net profit margin is 16%, the tax burden is 20%. What is the operating profit margin? A 19.2% B 12.8% Jg* 20% ' D 36% |~8~j EL car corp. plans an investment project that will expand the production capacity of electric cars. A project can be compared with riskiness of the US shares in the electro car industry, for which the expected return was evaluated at 14%. The yield on US government bonds is 5.5%. What is the minimum acceptable rate of return for the planned project? A 14%. B 5.5%. ^£^19.5%. D 8.5%. D 11 A B D 12 B D The company's ROA is 12%. Assuming that the cost of paid capital is 200,000 and the total value of debt is 1,500,000, what impact would the use of additional debt financing have on ROE? Further debt financing would have a positive effect on ROE (positive leverage effect). Further debt financing would have a negative effect on ROE (negative leverage effect). It is possible to estimate the effect on ROA, not ROE. It is not possible to determine the effect on ROE. 10 If the value of financial leverage is 2.4, it implies that: A Liabilities > Equity. B Liabilities = Equity. C Assets = Equity. yf Liabilities < Equity. Choose the correct statement: Financial leverage is always positive. Financial leverage can equal to 0.5. We classify financial leverage as an indicator of indebtedness. If financial leverage is equal to 1, it means that the firm uses only debt for financing. Choose the correct statement: The profit margin can also be understood as a competitive constraint. Profit margin can also be understood as capacity and competitive constraint. Asset turnover can also be understood as a capacity and competitive constraint. Asset turnover can also be understood as a competitive constraint. MPF AFAP: 1st test Zadani c. 18 13 Choose the incorrect statement regarding financial r planning: A Predictions in financial planning are always uncertain. b The simplest prediction method is based on sales prediction. C Predictions in financial planning are very accurate. d Creating a financial plan requires a thorough knowledge of the company based on financial analysis. 14 If we focus on a question of whether a company can deliver more value through an activity than others, which principle of responsible business we deal with. A The principle of multiplication. j£ The principle of comparative advantage. * C The principle of materiality. d The principle of absolute advantage. 15 Select the incorrect statement regarding asset turnover. A The higher the value of the indicator, the higher the ROA and the lower the ROE. b This is a determinant of company growth. 0 The higher the value of the indicator, the higher the ROA and ROE. d It is related to the length of the company's cash cycle.