The following information pertains to Diane Company for questions 5-10. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.

Assets

Cash and short-term investments

$ 30,000

Accounts receivable (net)

20,000

Inventory

15,000

Property, plant, and equipment

185,000

Total assets

$250,000

Liabilities and Stockholders Equity

Current liabilities

$ 45,000

Long-term liabilities

70,000

Stockholders equityCommon

135,000

Total liabilities and stockholders equity

$250,000

Income Statement

Sales

$ 85,000

Cost of goods sold

45,000

Gross margin

$ 40,000

Operating expenses

(15,000)

Interest expense

(5,000)

Net income

$ 20,000

Number of shares of common stock outstanding

6,000

Market price of common stock

$20

Total dividends paid

$9,000

Cash provided by operations

$30,000

What is the ratio of sales to total assets for Diane Company?

1.00

2.94

0.18

0.34

What is the rate earned on total assets for Diane Company?

10.0%

8.0%

0.10%

1.0%

What are the dividends per common share for Diane Company?

$0.67

$3.00

$1.50

$20.00

What is the dividend yield for Diane Company?

0.75%

7.5%

13.3%

1.3%

What is the rate earned on common stockholders equity for Diane Company?

6.75%

7.4%

14.8%

13.5%

What is the price earnings ratio for Diane Company?

2.5 times

4.0 times

6.0 times

8.0 times