答案和详解如下： 1.Selected financial information gathered from Alpha Company and Omega Corporation follows:
| Alpha | Omega | Revenue | $1,650,000 | $1,452,000 | Earnings before interest, taxes, depreciation, and amortization | 69,400 | 79,300 | Quick assets | 216,700 | 211,300 | Average fixed assets | 300,000 | 323,000 | Current liabilities | 361,000 | 404,400 | Interest expense | 44,000 | 58,100 |
Which of the following statements is most accurate? A) Alpha is less liquid than Omega. B) Alpha is more operationally efficient than Omega. C) Omega uses its fixed assets more efficiently than Alpha. D) Omega has less tolerance for leverage than Alpha. The correct answer was D) Using the EBITDA coverage (EBITDA / Interest expense) to measure leverage tolerance, Omega has less tolerance for leverage. Omega’s EBITDA coverage is 1.4 ($79,300 EBITDA / $58,100 interest expense) and Alpha’s EBITDA coverage is 1.6 ($69,400 EBITDA / $44,000 interest expense). Using the quick ratio to measure liquidity, Alpha is more liquid than Omega. Alpha’s quick ratio is 0.6 ($216,700 quick assets / $361,000 current liabilities) and Omega’s quick ratio is 0.5 ($211,300 quick assets / $404,400 current liabilities). Using EBITDA margin to measure operational efficiency, Alpha is less operationally efficient than Omega. Alpha’s EBITDA margin is 4.2% ($69,400 EBITDA / $1,650,000 revenue) and Omega’s EBITDA margin is 5.5% ($79,300 EBITDA / $1,452,000 revenue). Using fixed asset turnover to measure the efficiency of fixed assets, Omega uses its fixed assets less efficiently than Alpha. Alpha’s fixed asset turnover is 5.5 ($1,650,000 revenue / $300,000 average fixed assets) and Omega’s fixed asset turnover is 4.5 ($1,452,000 revenue / $323,000 average fixed assets). 2.When assessing credit risk, which of the following ratios would best measure a firm’s tolerance for additional debt and a firm’s operational efficiency?
Ratio #1 – Retained cash flow (CFO – dividends) divided by total debt.
Ratio #2 – Current assets divided by current liabilities.
Ratio #3 – Earnings before interest, taxes, depreciation, and amortization divided by revenues. Tolerance for leverage | Operational efficiency |
A) Ratio #3 Ratio #1 B) Ratio #2 Ratio #3 C) Ratio #1 Ratio #3 D) Ratio #3 Ratio # The correct answer was C) A firm’s tolerance for additional debt can be measured by its capacity to repay debt. Retained cash flow divided by total debt is one of several measures that can be used. Operational efficiency refers to the firm’s cost structure and can be measured by the “margin” ratios. EBITDA divided by sales is one version of an operating margin ratio. The durrent ratio is a measure of short-term liquidity. 3.Are the following statements about assessing credit risk true or false?
Statement #1 – From a lender’s perspective, higher margin volatility is for floating-rate debt but not for fixed-rate debt.
Statement #2 – Product and geographic diversification should lower credit risk. A) False True B) False False C) True True D) True False The correct answer was A) Margin stability is desirable from the lender’s perspective for both floating-rate and fixed-rate debt. Higher volatility will increase credit risk. Product and geographic diversification should lower credit risk as the borrower is less sensitive to adverse events and conditions. | 
发表于 2008-5-15 11:13
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