1.One advantage to using the price/book value (P/B) ratio over using the price/earnings (P/E) ratio is that P/B can be used when:

A)   the firm is in a slow growth phase.

B)   earnings or cash flows are negative.

C)   stock markets are volatile.

D)   the firm is highly leveraged, and debt exceeds the market value of equity.

2.Which of the following accounting variables is least likely to be manipulated?

A)   Net income.

B)   Depreciation expense.

C)   Sales.

D)   Interest expense.

3.Given the following information, compute the price/cash flow ratio for EAV Technology.

§ Net income per share = $6

§ Price per share = $100

§ Depreciation per share = $2

§ Interest expense per share = $4

§ Marginal tax rate = 25%

A)   10.0X.

B)   12.5X.

C)   8.3X.

D)   9.1X.

4.Given the following information, compute price/sales.

§ Book value of assets = $550,000

§ Total sales = $200,000

§ Net income = $20,000

§ Dividend payout ratio = 30%

§ Operating cash flow = $40,000

§ Price per share = $100

§ Shares outstanding = 1000

§ Book value of liabilities = $500,000

A)   2.00X.

B)   2.50X.

C)   0.50X.

D)   0.25X.

5.Given the following information, compute price/book value.

§ Book value of assets = $550,000

§ Total sales = $200,000

§ Net income = $20,000

§ Dividend payout ratio = 30%

§ Operating cash flow = $40,000

§ Price per share = $100

§ Shares outstanding = 1000

§ Book value of liabilities = $500,000

A)   2.5X.

B)   5.0X.

C)   5.5X.

D)   2.0X.

答案和详解如下：

1.One advantage to using the price/book value (P/B) ratio over using the price/earnings (P/E) ratio is that P/B can be used when:

A)   the firm is in a slow growth phase.

B)   earnings or cash flows are negative.

C)   stock markets are volatile.

D)   the firm is highly leveraged, and debt exceeds the market value of equity.

The correct answer was B)

When earnings are negative, P/E ratios cannot be used but P/B ratios can be used. The firm's rate of growth and use of leverage and the volatility of markets do not suggest advantages of using P/B ratios rather than P/E ratios.

2.Which of the following accounting variables is least likely to be manipulated?

A)   Net income.

B)   Depreciation expense.

C)   Sales.

D)   Interest expense.

The correct answer was C)

Sales is the accounting variable considered least likely to be manipulated.

3.Given the following information, compute the price/cash flow ratio for EAV Technology.

§ Net income per share = $6

§ Price per share = $100

§ Depreciation per share = $2

§ Interest expense per share = $4

§ Marginal tax rate = 25%

A)   10.0X.

B)   12.5X.

C)   8.3X.

D)   9.1X.

The correct answer was B)

Cash Flow = NI/share + Depr/share = $6 + $2 = $8

Price/cash flow = $100/$8.0X = 12.5X

4.Given the following information, compute price/sales.

§ Book value of assets = $550,000

§ Total sales = $200,000

§ Net income = $20,000

§ Dividend payout ratio = 30%

§ Operating cash flow = $40,000

§ Price per share = $100

§ Shares outstanding = 1000

§ Book value of liabilities = $500,000

A)   2.00X.

B)   2.50X.

C)   0.50X.

D)   0.25X.

The correct answer was C)

Market value of equity = ($100)(1000) = $100,000

Price/Sales = $100,000/$200,000 = 0.5X

5.Given the following information, compute price/book value.

§ Book value of assets = $550,000

§ Total sales = $200,000

§ Net income = $20,000

§ Dividend payout ratio = 30%

§ Operating cash flow = $40,000

§ Price per share = $100

§ Shares outstanding = 1000

§ Book value of liabilities = $500,000

A)   2.5X.

B)   5.0X.

C)   5.5X.

D)   2.0X.

The correct answer was D)

Book value of equity = $550,000 - $500,000 = $50,000

Market value of equity = ($100)(1000) = $100,000

Price/Book = $100,000/$50,000 = 2.0X