Financial Forensics · Quiz 2 · Jan 2023

A firm has a return on equity of 25 percent. The total asset turnover is 2.4 and the profit margin is 8 percent. The total equity is ₹ 4,100. What is the net income?

A firm has net working capital of ₹ 580, net fixed assets of ₹ 2,326, sales of ₹ 6,900, and current liabilities of ₹ 890. How many rupees worth of sales is generated from every ₹ 1 in total assets?

Mario's Home Systems has sales of ₹ 2,820, costs of goods sold of ₹ 2,160, inventory of ₹ 504, and accounts receivable of ₹ 430. How many days, on average, does it take Mario's to sell its inventory?

Frederico's has a net income of ₹ 29,600, a total asset turnover of 1.4, total assets of ₹ 3,18,600, and a debt-equity ratio of .35. What is the return on equity?

Catherine's Consulting paid dividends of ₹ 3,300 and total equity of ₹ 39,450. The debt-equity ratio is 1 and the retention ratio is 40 percent. What is the return on assets?

Southern Foods has net income of ₹ 39,900, net sales of ₹ 3,18,600, total assets of ₹ 6,63,000, common stock of ₹ 1,06,800 with a par value of ₹1 per share, and retained earnings of ₹ 2,24,400. The stock has a market value of ₹ 5.45 per share. What is the price-earnings ratio?

Mohan will receive a perpetuity of ₹ 30,000 per year forever, while Rohan will receive the same annual payment for the next 30 years. If the interest rate is 7.4 percent, how much more are Mohan’s payments worth?

Your grandparents would like to establish a trust fund that will pay you and your heirs ₹ 2,05,000 per year forever with the first payment 12 years from today. If the trust fund earns an annual return of 4 percent, how much must your grandparents deposit today?

An annuity costs ₹ 70,000 today, pays ₹ 3,500 a year, and earns a return of 4.5 percent. What is the length of the annuity time period?

Nu-Tools plans to set aside an equal amount of money each year, starting today, so that it will have ₹ 25,000 saved at the end of three years. If the firm can earn 4.7 percent, how much does it have to save annually?

Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of ₹ 34,500, ₹ 55,950, ₹ 62,210, ₹ 59,930, and ₹ 42,910, respectively. The project has an initial cost of ₹149,920 and the required return is 8 percent. What is the project's NPV?

According to the CAPM, the expected return on a security is:

Phil's Carvings wants to have a weighted average cost of capital of 9.5 percent. The firm has an after-tax cost of debt of 6.5 percent and a cost of equity of 12.75 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

What is the cost of equity for a firm that has a beta of 1.2 if the risk-free rate of return is 2.9 percent and the expected market return is 11.4 percent?

What is the relationship between the IRR and the cost of capital?

After missing 4 consecutive payments, a customer paid back the missed instalments in the 5\(^{th}\) month. Has the customer rolled back or rolled forward?

Which of the following is used to remove bias from the declined population?

A machine learning model has a PSI value of 0.14. Which of the following seems appropriate?

What is the KS of the below table?

What is the capture rate at the top 3 bins from the below report?

Which of the information values imply strong predictive power?

Which of the following statements is true about the weight of evidence?

What is the rollback rate for 60-89 DPD after 18 MOB?

Roll forward rate is the rate of customers who continue to be delinquent and do not pay back the credit due in the future.

Which of the following about reject inferencing is true?