141. The following information is available for Dorman Co.:
2009
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 current returns on their investments.C. The dividend yield is 12.5%, which is of interest to bondholders.D. The dividend yield is 8.0 times the market price, which is important in solvency analysis.
142. 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
143. The best way to study the relationship of the components within a financial statement is to prepare A. ratio analysis.B. common size statements.C. a trend analysis.D. profitability analysis.
144. Which one of the following is not a characteristic generally evaluated in ratio analysis? A. LiquidityB. ProfitabilityC. SolvencyD. Marketability
145. Short-term creditors are usually most interested in assessing A. marketability.B. profitability.C. operating results.D. solvency.
146. A common measure of liquidity is A. ratio of net sales to assets.B. dividends per share of common stock.C. receivable turnover.D. profit margin.
147. Toledo Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2009. The weighted average number of shares outstanding in 2009 was 50,000 shares. Toledo Corporation’s common stock is selling for $50 per share on the New York Stock Exchange.Toledo Corporation’s price-earnings ratio is A. 10 times.B. 5 times.C. 2 times.D. 8 times.
148. A company that is leveraged is one that A. contains debt financing.B. contains equity financing.C. has a high current ratio.D. has a high earnings per share.
149. Use the following information for questions 64-70.The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.Assets
Cash and short-term investments
$ 40,000
Accounts receivable (net)
25,000
Inventory
20,000
Property, plant and equipment
210,000
Total Assets
$295,000
Liabilities and Stockholders’ Equity
Current liabilities
60,000
Long-term liabilities
85,000
Stockholders’ equity-common
150,000
Total Liabilities and stockholders’ equity
$295,000
Income Statement
Sales
$ 85,000
Cost of goods sold
45,000
Gross margin
40,000
Operating expenses
20,000
Net income
$ 20,000
Number of shares of common stock
6,000000
Market price of common stock
$20
Dividends per share
0.90
Cash provided by operations
$30,000
What is the current ratio for this company? Round your answer to one decimal point. A. 0.60B. 1.16C. 0.80D. 1.42
150. Use the following information for questions 64-70.The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.Assets
Cash and short-term investments
$ 40,000
Accounts receivable (net)
25,000
Inventory
20,000
Property, plant and equipment
210,000
Total Assets
$295,000
Liabilities and Stockholders’ Equity
Current liabilities
60,000
Long-term liabilities
85,000
Stockholders’ equity-common
150,000
Total Liabilities and stockholders’ equity
$295,000
Income Statement
Sales
$ 85,000
Cost of goods sold
45,000
Gross margin
40,000
Operating expenses
20,000
Net income
$ 20,000
Number of shares of common stock
6,000000
Market price of common stock
$20
Dividends per share
0.90
Cash provided by operations
$30,000
What is the receivable turnover for this company? Round your answer to one decimal point. A. 3.4 timesB. 2.8 timesC. 2.0 timesD. 3.0 times
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