Question :
81. MusicPod’s earnings per share ratios were $2.47 and $2.07 respectively : 1228467
81. MusicPod’s earnings per share ratios were $2.47 and $2.07 respectively for 2011 and 2010. MusicPod’s stock was trading at $53.00 and $41.50 per share at the end of 2011 and 2010 respectively. The company paid cash dividends per share of $.85 in 2011 and $.63 in 2010. Total stockholders’ equity was $13,572 million and $11,896 million in 2011 and 2010 respectively. The common shares outstanding were approximately 1,782,000 during both 2011 and 2010. What was MusicPod’s dividend yield ratio for 2011?
A. 34.4%
B. 1.4%
C. 30.4%
D. 1.6%
82. Lee Company has provided the following information:
? Cash flow from operating activities, $240,000;
? Net income, $204,000;
? Interest expense, $20,000;
? Interest cash payments, $10,000;
? Income tax payments, $140,000;
? Income tax expense, $136,000.
What was Lee’s cash coverage ratio?
A. 39.0
B. 20.0
C. 19.8
D. 39.6
83. Lee Company has provided the following information:
? Cash flow from operating activities, $240,000;
? Net income, $204,000;
? Interest expense, $20,000;
? Interest cash payments, $10,000;
? Income tax payments, $140,000;
? Income tax expense, $136,000.
What was Lee’s times interest earned ratio?
A. 39.0
B. 18.0
C. 35.4
D. 17.7
84. Lee Company has provided the following information:
? Cash flow from operating activities, $240,000;
? Net income, $204,000;
? Interest expense, $20,000;
? Interest cash payments, $10,000;
? Income tax payments, $140,000;
? Income tax expense, $136,000.
What was Lee’s quality of income ratio?
A. 1.18
B. 0.85
C. 1.76
D. 0.74
85. Lucas Company has provided the following information:
? Cash flow from operating activities, $360,000;
? Net income, $306,000;
? Interest expense, $30,000;
? Interest cash payments, $20,000;
? Income tax payments, $240,000;
? Income tax expense, $246,000.
What was Lucas’ cash coverage ratio?
A. 21.0
B. 31.8
C. 21.2
D. 31.0
86. Lucas Company has provided the following information:
? Cash flow from operating activities, $360,000;
? Net income, $306,000;
? Interest expense, $30,000;
? Interest cash payments, $20,000;
? Income tax payments, $240,000;
? Income tax expense, $246,000.
What was Lucas’ times interest earned ratio?
A. 18.9
B. 19.4
C. 28.3
D. 31.0
87. Lucas Company has provided the following information:
? Cash flow from operating activities, $360,000;
? Net income, $306,000;
? Interest expense, $30,000;
? Interest cash payments, $20,000;
? Income tax payments, $240,000;
? Income tax expense, $246,000.
What was Lucas’ quality of income ratio?
A. 0.85
B. 0.74
C. 1.18
D. 0.93
88. Which of the following transactions doesn’t affect earnings per share?
A. A 2-for-1 common stock split.
B. A 10% common stock dividend distribution.
C. Accruing revenue at year-end.
D. Issuing additional shares of preferred stock.
89. Which of the following transactions increases both the quick and current ratios assuming that both ratios are greater than 1?
A. Collecting an account receivable.
B. Purchasing inventory on account.
C. Accruing revenue earned at year-end.
D. Selling inventory on account at the cost of the inventory.
90. Which of the following correctly describes the effect of Mogul Company declaring and distributing a 10% common stock dividend?
A. Mogul’s current ratio decreased.
B. Mogul’s return on equity ratio decreased.
C. Mogul’s debt-to-equity ratio remained the same.
D. Mogul’s return on assets decreased.
