Assume a company provided the following information:

Net income	$	60,000
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	$	11.75
Dividends per share	$	0.50
Total assets, end of the year	$	200,000
Total liabilities, end of the year	$	80,000

The dividend yield ratio is closest to:

Multiple Choice

• 7.7%.

• 41.7%.

• 4.3%.

• 6.4%.

Assume a company had sales on account of $85,000 and its beginning and ending balances in accounts receivable were $12,000 and $8,000, respectively. In addition, its cost of goods sold was $68,000 and its beginning and ending inventory balances were $10,000 and $14,000, respectively. The average collection period is closest to:

Multiple Choice

• 42.94 days.

• 52.19 days.

• 64.41 days.

• 54.94 days.

Assume a company provided the following information:

Net operating income	$	211,000
Net income before tax	$	170,000
Net income	$	119,000
Gross margin	$	680,000

The times interest earned ratio is closest to:

Multiple Choice

• 0.81.

• 5.15.

• 1.81.

• 2.45.