ANSWER ONLY

1. The following are given for Masbate Co. for 20B

Merchandise Inventory , Dec 31, 20A	P 75,000
Merchandise Inventory , Dec 31, 20B	85,000
Freight - in	10,000
Inventory turnover rate	9 times
Selling Expenses	20 % of sales
Administrative expenses	10 % of sales
Income before Income tax	10 % of sales

Income before Income tax must be P _____________

2.What is the company's dividend yield on common stock if its asset turnover is 0.9 , payout ratio is 0.60, and price earnings ratio is 10?

Question.

9 % 5 % 6 % 7.5 %