FIN 575 Final Exam 2017 Answers | FIN/575 Project Budget and Finance

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7. For the most recent year, Cal’s Cats had sales of $380,000, cost of
goods sold of $93,000, depreciation expense of $47,000, and additions
to retained earnings of $61,420. The firm had $52,000 in interest
expense, and 34% tax rate. What were the times interest earned ratio?
• 2.2
• 5.8
• 4.61
• 2.8
8. Bob’s Garages has sales of $41 million, total assets of $32 million,
and total debt of $11 million. If the profit margin is 12% what is the
return on equity (ROE)?
• 14%
• 12%
• 51%
• 23.40%