141. For 2008, net income is $250,000, shares outstanding are 80,000, and the market price is $24. What is the price-earnings ratio on common stock (round to one decimal point?) A. 3.1B. 7.7C. 34.9D. 2.5
142. Based on the following information, what is Company B’s price-earnings ratio?
Company A
Company B
Market price per share
$70.00
$85.00
Earnings per share
14.00
11.00
Dividends per share
0.05
0.10
Investor’s cost per share
40.00
50.00
A. 935B. 7.73C. 5.00D. 0.13
143. The balance sheets at the end of each of the first two years of operations indicate the following:
2008
2007
Total current assets
$500,000
$450,000
Total investments
100,000
50,000
Total fixed assets
900,000
600,000
Total current liabilities
200,000
75,000
Total long-term liabilities
400,000
225,000
Preferred 9% stock, $100 par
100,000
100,000
Common stock, $10 par
500,000
500,000
Paid-in capital in excess of par-
common stock
50,000
50,000
Retained earnings
250,000
150,000
For 2008, net income is $125,000, interest expense is $40,000, and the market price is $25. What is the price-earnings ratio on common stock (round to one decimal point)? A. 10.0B. 10.8C. 14.7D. 7.6
144. Companies merge in order to create synergy. All of the statements below represent strategies to create synergy except A. reduce costsB. replace managementC. horizontal expansionD. reduce selling price
145. An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $47.50 per share. What is the amount of gain or loss on the sale? A. $4,350 gainB. $400 gainC. $400 lossD. $16,800 loss
146. Patterson Company owns 83% of the outstanding stock of Taylor Company. Taylor Company is referred to as the A. parentB. minority interestC. affiliateD. subsidiary
147. Greg Company owns 87% of the outstanding stock of Kay company. Greg Company is referred to as the A. parentB. minority interestC. affiliateD. subsidiary
148. For 2008, net income is $240,000, shares outstanding are 80,000, and the market price is $24. What is the price-earnings ratio on common stock (round to one decimal point?) A. 8.0B. 7.7C. 10.0D. 3.0
149. Based on the following information, what is Company X’s price-earnings ratio?
Company X
Company Y
Market price per share
$60.00
$75.00
Earnings per share
15.00
12.00
Dividends per share
0.05
0.10
Investor’s cost per share
40.00
50.00
A. 4.00B. 6.25C. 5.00D. 1.50
150. Based on the following information, what is Company Y’s price-earnings ratio?
Company X
Company Y
Market price per share
$60.00
$75.00
Earnings per share
15.00
12.00
Dividends per share
0.05
0.10
Investor’s cost per share
40.00
50.00
A. 4.00B. 6.25C. 5.00D. 1.50
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more