Unpaid dividends on cumulative preferred stock are called dividends in arrears.

True

False

Generally, a relatively high P/E ratio indicates:

improvements in future profitability.

diminished future profitability.

a high current return for shareholders of a company.

a high level of debt financing.

Which of the following would not be included in the cash and cash equivalents amount reported on the balance sheet?

Checking accounts

Notes receivable due in 90 days

Money market funds

Treasury bills

A company has earnings per share of $1.20, it paid a dividend of $.50 per share, and the market price of the company's stock is $45 per share. The price/earnings ratio is closest to:

2.0.

64.29.

2.40.

37.50.