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4. Peggy Grey's Cookies has net income of $300. The firm pays out 40 percent of the net income to its shareholders as dividends. During

4.

Peggy Grey's Cookies has net income of $300. The firm pays out 40 percent of the net income to its shareholders as dividends. During the year, the company sold $75 worth of common stock. What is the cash flow to stockholders?

$195.00

$120.00

$90.00

$180.00

$45.00

5.

A firm has sales of $4,840, costs of $2,640, interest paid of $179, and depreciation of $493. The tax rate is 34 percent. What is the value of the cash coverage ratio?

16.44

9.54

8.39

12.29

5.63

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