Question :
101. The tendency of the rate earned stockholders’ equity to vary : 1226787
101. The tendency of the rate earned on stockholders’ equity to vary disproportionately from the rate earned on total assets is sometimes referred to as A. leverageB. solvencyC. yieldD. quick assets
102. The balance sheets at the end of each of the first two years of operations indicate the following:
2012
2011
Total current assets
$600,000
$560,000
Total investments
60,000
40,000
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
65,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par-common stock
75,000
75,000
Retained earnings
310,000
210,000
If net income is $115,000 and interest expense is $30,000 for 2012 what is the rate earned on total assets for 2012 (round percent to one decimal point)? A. 9.3%B. 10.1%C. 8.0%D. 7.4%
103. The balance sheets at the end of each of the first two years of operations indicate the following:
2012
2011
Total current assets
$600,000
$560,000
Total investments
60,000
40,000
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
65,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par-common stock
75,000
75,000
Retained earnings
310,000
210,000
If net income is $115,000 and interest expense is $30,000 for 2012, what is the rate earned on stockholders’ equity for 2012 (round percent to one decimal point)? A. 10.6%B. 11.1%C. 12.4%D. 14.0%
104. The balance sheets at the end of each of the first two years of operations indicate the following:
2012
2011
Total current assets
$600,000
$560,000
Total investments
60,000
40,000
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
65,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par-common stock
75,000
75,000
Retained earnings
310,000
210,000
If net income is $115,000 and interest expense is $30,000 for 2012, what are the earnings per share on common stock for 2012, (round to two decimal places)? A. $2.07B. $1.92C. $1.77D. $1.64
105. The balance sheets at the end of each of the first two years of operations indicate the following:
2012
2011
Total current assets
$600,000
$560,000
Total investments
60,000
40,000
Total property, plant, and equipment
900,000
700,000
Total current liabilities
125,000
65,000
Total long-term liabilities
350,000
250,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
600,000
600,000
Paid-in capital in excess of par-common stock
75,000
75,000
Retained earnings
310,000
210,000
If net income is $115,000 and interest expense is $30,000 for 2012, and the market price is $30, What is the price-earnings ratio on common stock for 2012 (round to one decimal point)? A. 16.9B. 12.1C. 14.4D. 13.3
106. The numerator of the rate earned on common stockholders’ equity ratio is equal to A. net incomeB. net income minus preferred dividendsC. income plus interest expenseD. income minus interest expense
107. The numerator of the rate earned on total assets ratio is equal to A. net incomeB. net income plus tax expenseC. net income plus interest expenseD. net income minus preferred dividends
108. The following information is available for Taylor Company:
2012
Market price per share of common stock
$25.00
Earnings per share on common stock
$ 1.25
Which of the following statements is correct? A. The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of 2010.B. The price-earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2010.C. The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2010.D. The market price per share and the earnings per share are not statistically related to each other.
109. The following information is available for Dorman Company:
2010
Dividends per share of common stock
$ 1.40
Market price per share of common stock
$ 17.50
Which of the following statements is correct? A. The dividend yield is 8.0%, which is of interest to investors seeking an increase in market price of their stocks.B. The dividend yield is 8.0%, which is of special interest to investors seeking to earn revenue on their investments.C. The dividend yield is 12.5%, which is of interest to bondholders.D. The dividend yield is 12.5% which is an important measure of solvency.
110. The particular analytical measures chosen to analyze a company may be influenced by all of the following except: A. industry typeB. capital structureC. diversity of business operationsD. product quality or service effectiveness
