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1.
Fixed asset turnover measures _______.
The amount of sales a company generates from its fixed assets. It is used as a measure of sales success.
2.
If a company with a beta of 3.0 is expected to get a return of 15 percent, what can we expect the return of the overall market to be?
5 percent. A beta of three indicates three times the earnings possibility of the overall market. Thus, the overall market's return would be only one-third that of our company.
3.
To calculate a stock's price/earnings ratio, divide the present market price of a share by its earnings per share for the last 12 months.
True. This is the correct way to figure price/earnings ratio.
4.
A company's book value is _______.
The value of its assets minus liabilites. Book value is the value of a company's assets.
5.
Profit margin is a widely used measure in business. It measures earnings compared to _______.
Sales. Profit margin compares earnings to sales, where the earnings are either before taxes or after.
6.
Taxes are among the expenditures on an income statement.
True. Taxes are subtracted from income.
7.
Which source of company information includes the costs of producing the company's goods?
The income statement. This statement includes income and costs.