| D. Common stock gives stockholders first title to a share of the company's earnings, prior to other corporate obligations. ---- Tiffany owned 1000 shares of GIA stock which was selling for $1.50 per share when the company declared a 1 for 10 reverse split. After the split, Tiffany owned | A. 10,000 shares worth approximately $1.50 per share. | | | B. 10,000 shares worth approximately $0.15 per share. | | | C. 100 shares worth approximately $15 per share. | | | D. 100 shares worth approximately $1.50 per share. ---- Westlake Industries has total assets of $42.5 million, total debt of $29.3 million, and $2.4 million of 6% preferred stock outstanding. If the company has 250,000 shares of common stock outstanding, its book value per share would be | A. $32.33. | | | B. $33.60. | | | C. $43.20. | | | D. $52.80. --- The Limberger Corporation declared a quarterly dividend of $0.10 per share. The ex-dividend date was July 15, the date of record was July 18, and the payment date was July 28. If you had owned 100 shares of the Limberger Corporation and sold them on July 15, then | A. you would collect $10.00 in dividends, and the purchaser would not collect any dividends. | | | B. the purchaser would collect $10.00 in dividends, and you would not collect any dividends. | | | C. you would collect $5.00 in dividends, and the purchaser would collect $5.00 in dividends. | | | D. neither you nor the purchaser would collect any money in dividends. ---- Pilgrim Corp. stock currently sells for $25 per share? The dividend yield is $1.00 per share and earnings per share are $3.00. The dividend yield is ________ and the the dividend payout ratio is ________. | A. 12%, .48% | | | B. 8.33%, 25% | | | C. 4%, 33% | | | D. 33%,4%. ---- A high current ratio can tell us that the company ________. | A. should be able to cover the current liabilities | | | B. should be able to keep away from short-term cash problems | | | C. may have too much capital tied up in current assets | | | D. All of the above | | | E. Only A and B ---- Which of these statements is true? | A. For a company to remain in business for the long term, cash flow from investing activities and financing activities must generally be positive numbers. | | | B. A company may appear to be profitable on its income statement, but fail to generate strong cash flows. | | | C. The statement of cash flows is used to assess a company's long-term solvency. | | | D. The income statement reflects the amount of cash available for investment and financing activities. ---- A company has sales of $640,000, net profit after taxes of $23,000, and a total asset turnover of 2.5. What is the return on assets? | A. 3.6% | | | B. 4.5% | | | C. 8.1% | | | D. 9.0% ---- The Merry Co. has current annual sales of $350,000 and a net profit margin of 6%. Sales are expected to increase by 5% annually while the profit margin is expected to remain constant. What is the projected after-tax earnings for two years from now? | A. $19,294 | | | B. $22,050 | | | C. $23,100 | | | D. $23,153 ---- | | | | | | | | |
