1. Company ABC has a market capitalization of $750 million, Book Value (Shareholder’s Equity) Per share of $15 and net income of $25 million. If the stock is currently trading at $30. The Return on Equity is:
A. 3.3%
B. 6.7%
C. 9.3%
D. 50.0%
2. The current ratio of Company X is 3.0 times. Company X has working capital of $20,000. Total Current Assets for Company X are:
A. $6,667
B. $10,000
C. $30,000
D. $60,000
3. Company X reports $200,000 in sales of Widgets in 2016. The Costs of Goods sold for these Widgets is $90,000. All other operating expenses (SG&A, R&D, Depreciation, Other, etc.) are $50,000. Which of the following is the correct representation of the profitability ratios:
A. Gross Profit Margin 45%, Operating Margin 30%.
B. Gross Profit Margin 55%, Operating Margin 30%.
C. ross Profit Margin 45%, Operating Margin 20%.
D. ross Profit Margin 55%, Operating Margin 20%.