Fibonacci Property Management's Balance Sheet Shows Total Liabilities of $5

question 89

Multiple Choice

Fibonacci Property Management's balance sheet shows total liabilities of $5 million and total assets of $13 million.Interest bearing liabilities total $3 million (book value) .Excess cash $500,000.The market value of Fibonnacci's equity is $21 million.What is Fibonacci's Debt to Enterprise Value ratio?

• A).38
• B).23
• C).125
• D).106

Ability to calculate dividends and understand the impact on shareholders.

Knowing different types of preference shares and their specific attributes.

Understanding how share transactions (buyback, retirement, treasury shares) affect a company's financial statements.

Ability to analyze the implications of financial decisions on a company's leverage and stock performance.

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Definitions:

Activity Variance

The difference between the budgeted cost for an activity level and the actual cost incurred, indicating deviations from planned performance.

Net Operating Income

A company's income after operating expenses have been deducted, but before income taxes and interest expenses are taken into account.

October

The tenth month of the year in the Gregorian calendar, often associated with autumn in the Northern Hemisphere.

Refurbishment Company

A business specializing in the process of renovating or restoring products to their original condition or better.