Question : 71.Blue Corporation reported earnings per share of common stock at : 1302939

 

 

71.Blue Corporation reported earnings per share of common stock at $12 in 2014 and paid dividends of $3 per share. The current market price per share is $102 and the book value per share is $54. Blue Corporation has no preferred stock. How much is the company’s price-earnings ratio?

A.$11.80

B.$1.90

C.$8.50

D.$11.30

 

72.McDonald Company’s net income in 2014 was $200,000. The company paid preferred dividends of $32,000 and common stock dividends of $10,000. It average common stockholders’ equity was $850,000 during 2014. How much is the company’s return on common stockholders’ equity for 2014?

A.19.8%

B.23.5%

C.18.6%

D.4.3%

 

73.The following is from Nantucket Limited’s records for 2014:

 

Account BalancesJanuary 1December 31

Common stock              $210,000              $250,000

Additional paid-in-capital              95,000              110,000

Retained earnings              105,000              195,000

 

During 2014, the company paid dividends of $15,000 on its common stock. The company’s net income for the year was $105,000. How much is the company’s return on common stockholders’ equity for the year ending December 31, 2014?

A.18.9%

B.16.2%

C.22.0%

D.25.6%

 

74.Relish Holdings had 250,000 shares of common stock outstanding and 40,000 shares of preferred stock outstanding. No shares were issued or repurchased during the year. The company paid a dividend of $1.50 per share of common stock and $2 per share of preferred stock. If the company reported earnings per common share of $1.60, how much would net income have been?

A.$480,000

B.$400,000

C.$156,250

D.$320,000

 

75.Denton Limited Company reported earnings per share of common stock $2 in 2014 and paid dividends of $1.50 per share. Denton has no preferred stock issued. The current market price per share is $15 and the book value per share is $14. How much is Denton’s price-earnings ratio?

A.$6.75

B.$7.50

C.$7.00

D.$30.00

 

76.Asset turnover is

A.net income divided by sales.

B.net sales divided by total assets.

C.net sales divided by current assets.

D.earnings per share divided by the market price per share of stock.

 

77.Asset turnover is a measure of

A.how quickly a company is replacing its old plant assets with new plant assets.

B.how quickly a company is turning its sales into cash.

C.the overall efficiency with which the company uses assets to generate revenues.

D.how rapidly the stock market believes the company will grow.

78.Inventory turnover

A.is a measure of the profitability of selling inventory.

B.is used to calculate how quickly customers pay for inventory they purchased.

C.is an indicator of how quickly suppliers are being paid by the company.

D.measures how efficiently a company sells it inventory.

 

79.The higher the amount of a company’s accounts receivable turnover,

A.the shorter time period it takes to collect a receivable.

B.the more assets a company has tied up in receivables.

C.the longer it takes a company to collect its receivables.

D.the more likely a company will experience cash flow problems.

 

80.Which statement is true concerning the current ratio?

A.It is usually a larger amount than the acid-test ratio.

B.It is a more stringent test of a company’s ability to pay its short-term obligations.

C.It measures a company’s ability to manage its assets efficiently.

D.It measures a company’s ability to make interest payments on debt.

 

 

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