11. Price-Earnings ratio multiply by dividends yield ratio is equal to

a. Pay-out ratio c. Retention ratio b. Return on Equity d. Earnings per share

12. A company has a current ratio of 2 to 1. This ratio will decrease if the company

a. Receives a 5% bonus shares on one of its marketable securities. b. Pays a large account payable which had been a current liability. c. Borrow cash on a 6-month note. d. Sell merchandise for more than cost and record the sale using the perpetual inventory method.

13. Which of the following ratios would be least useful in determining a company's ability to pay its expenses and liabilities? a. Acid-test ratio c. Times- interest earned b. Price-earnings ratio d. Current ratio