AFM Final

Question 1

Profit margin =

Answer 1

Net income / total sales

Question 2

Return on equity =

Answer 2

Net income / equity

Question 3

Return on assets =

Answer 3

Net income / total assets

Question 4

EPS

Answer 4

(Net income - preferred stock) / shares outstanding

Question 5

P/E ratio =

Answer 5

Stock price / EPS

Question 6

Dupont = (in words)

Answer 6

profit margin x asset turnover x equity multiplier

Question 7

Dupont =

Answer 7

(NI / total sales) x (sales / total assets) x (total assets / average equity)

Question 8

Wd =

Answer 8

MVd / (MVd+MVe)

Question 9

We =

Answer 9

MVe / (MVd + MVe)

Question 10

FVn =

Answer 10

PV (1+I/Y)^N

Question 11

simple interest =

Answer 11

PV + PV(I/Y)(N)

Question 12

PVn =

Answer 12

FVn / (1+I/Y)^N

Question 13

FVAdue =

Answer 13

FVAordinary(1+I/Y)

Question 14

periodic rate Iper =

Answer 14

Inom / M

Question 15

EAP =

Answer 15

(1+Iper)^m - 1

Question 16

EFF% =

Answer 16

(1+Iper)^m -1

Question 17

amortization table row 1

Answer 17

beginning

Question 18

amortization table row 2

Answer 18

payment

Question 19

amortization table row 3

Answer 19

interest

Question 20

amortization table row 4

Answer 20

repayment

Question 21

amortization table row 5

Answer 21

end

Question 22

amortization table row 4 =

Answer 22

payment - interest = repayment

Question 23

amortization table row 5 =

Answer 23

beginning - repayment = end