Calculate FCFF given: Net Income = 500, Non-cash charges = 100, Interest Expense = 50, Tax Rate = 30%, Fixed Capital Investment = 200, Working Capital Investment = 50.

Question 11

Calculate FCFE given: CFO = 1000, Fixed Capital Investment = 400, Net Borrowing = 100.

Question 12

Which ratio is calculated as CFO divided by Net Revenue?

Question 13

The Cash Return on Assets ratio is defined as:

Question 14

In the Cash Flow per Share (CFPS) calculation, what must be subtracted from CFO in the numerator?

Question 15

Which coverage ratio is calculated as CFO divided by Total Debt?

Question 16

The Interest Coverage ratio using cash flows is calculated as:

Question 17

The Reinvestment Ratio is defined as CFO divided by:

Question 18

If a company has a Dividend Payment ratio of 2.5, this implies:

Question 19

In a common-size cash flow statement where inflows are expressed as a percentage of total inflows, what does a high percentage for 'Cash from Customers' indicate?

Question 20

Calculate the Debt Payment Ratio given: CFO = 500, Dividend Paid = 50, Long-term Debt Repayment = 200.

Question 21

Which ratio measures the firm's ability to satisfy short-term obligations?

Question 22

What is the primary difference between FCFF and FCFE regarding interest?

Question 23

Calculate Net Borrowing for FCFE if the firm issued 500 in new debt and repaid 200 in old debt.

Question 24

Which cash flow category includes the payment of dividends to shareholders?

Question 25

The 'Investing and financing' ratio is calculated as CFO divided by:

Question 26

If a firm sells a building, the proceeds are recorded in:

Question 27

Calculate Cash Flow per Share if CFO is 1,000,000, Preferred Dividends are 200,000, and Weighted Average Common Shares are 100,000.

Question 28

Which of the following is considered a 'Non-cash charge' (NCC) added back to Net Income for FCFF calculation?

Question 29

Which ratio indicates the percentage of operating cash flow available for capital expenditures?

Question 30

If CFO is 200, Interest Paid is 20, Taxes Paid is 30, what is the Interest Coverage ratio?

Question 31

Cash to Income ratio is defined as:

Question 32

The calculation of FCFE starting from FCFF is:

Question 33

Why is 'Interest x (1 - t)' added back to Net Income when calculating FCFF?

Question 34

In a common-size cash flow statement, if 'Cash paid to suppliers' is (40 percent), this usually represents percentage of:

Question 35

Which activity would include the 'proceeds from issuing shares'?

Question 36

Calculate Cash Return on Equity given: CFO = 300, Beginning Equity = 900, Ending Equity = 1100.

Question 37

A 'Cash flow to revenue' ratio of 0.15 means:

Question 38

Under 'Investing activities', which of the following is an outflow?

Question 39

What does a high Dividend Payment ratio indicate if it exceeds 1.0 significantly?

Question 41

Which of the following is NOT a Performance Ratio listed in the text?

Question 42

Calculate the 'Reinvestment Ratio' if CFO is 1000 and cash paid for long-term assets is 250.

Question 43

Net Borrowing in the FCFE formula refers to:

Question 44

If a company has high 'Cash to Income' ratio (greater than 1), it generally suggests:

Question 45

Which component is subtracted when calculating FCFF from CFO?

Question 46

In a common-size analysis, expressing 'Cash paid to suppliers' as a percentage of 'Total Outflows' allows an analyst to:

Question 47

Working Capital Investment in the FCFF calculation refers to:

Question 48

If Net Income is 100 and CFO is 150, what is the most likely reason for the difference?

Question 49

Which ratio uses 'Average Assets' in the denominator?

Question 50

What is the numerator for the 'Debt coverage' ratio?