53.000 Quiz #1 - Chapters 1-3 Question 1 (40 marks) Benson Inc. had the following results for their operations last year. Operating income $ 229,000 Interest expense 25.000 Operating expenses 263.000 Preferred dividends paid 26.000 Common dividends paid $ Tax Rate 27% Number of common shares outstanding 26.000 Opening Retained Earnings Balance 72.000 Share price 63 a) Calculate the earnings per share (EPS) and the common dividend per share for Benson Inc. b) What was the payout ratio? What is the retained earnings balance at year end? What is its price-camnings ratio (PE) Question 2 (30 marks) Assume the following data for Interactive Technology and Silicon Softwear Interactive Silicon Softwear Technology (55) Net Income 5 58.000 Total Sales (80% are on account 5 187.000 $ 1.036.000 Average AR Balance 5 242.000 Total debt 5 60.000 $ 200.000 Shareholders equity 5 112.000 $ 155.000 Required a) Calculate the following ratios for each company Receivables Tumover Return on shareholders equity Debt to total assets b) For each of the ratios above, indicate which company has the better resul