Assume a company provided the following information:

Earnings per share	$	2.30
Number of common shares outstanding, beginning of the year		45,000
Number of common shares outstanding, end of the year		55,000
Price-earnings ratio		12.50
Dividend yield ratio		0.50

The market price per share of common stock is closest to:

Multiple Choice

• $28.75.

• $27.75.

• $26.17.

• $24.17.

Assume a company provided the following excerpts from its balance sheet and income statement as shown below:

	Ending Balance				Beginning Balance
Current assets	$	148,000			$	140,000
Total assets	$	480,000			$	380,000
Current liabilities	$	80,000			$	70,000
Total liabilities	$	174,600			$	174,000
Total stockholders equity	$	305,400			$	206,000

Sales	$	1,000,000
Cost of goods sold		600,000
Gross margin		400,000
Selling and administrative expenses		250,000
Net operating income		150,000
Interest expense		8,000
Net income before taxes		142,000
Income taxes		42,600
Net income	$	99,400

The companys current ratio at the end of the year is closest to:

Multiple Choice

• 1.60.

• 1.85.

• 2.00.

• 2.10.

Assume a company provided the following information:

Net income	$	68,000
Number of common shares outstanding, beginning of the year		45,000
Number of common shares outstanding, end of the year		55,000
Market price per share	$	15
Dividends per share	$	0.50
Total assets, end of the year	$	200,000
Total liabilities, end of the year	$	80,000

The price-earnings ratio is closest to:

Multiple Choice

• 9.03.

• 11.03.

• 10.03.

• 8.03.