What is the company return on investment

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Questions -

Q1. A company has a capital employed of P 200,000. It has a cost of capital of 12% per year. Its residual income is P 36,000. What is the company's return on investment?

a. 30%

b. 12%

c. 18%

d. 22%

Q2. Expressed as a percentage, what would be a company's current ratio if net fixed assets are Ph1,230,000; current assets, P368,400; current liabilities, Ph120,00 and other liabilities, Ph65,000

a. 307%

b. 450%

c. 603%

d. 860%

Q3. Given an acid-test ratio of 2.0, current assets of Ph5,000 and inventory of Ph2,000, the value of current liabilities is

a. 1500

b. 2500

c. 3500

d.6000

Q4. A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current liabilities make a payment of a P1,500 current debt. As a result of this transaction, the current ratio and quick ratio will

a. both decrease

b. increase and decrease, respectively

c. both increase

d. remain the same and decrease, respectively

Q5. Sensitivity analysis refers to

a. what-if situations.

b. variable costs only.

c. fixed costs only.

d. control

Reference no: EM133185091

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