101.If net income is $150,000 and interest expense is $20,000 for Year 2, what is the rate earned on total assets for theyear?
a. 10.4%
b. 11.9%
c. 10.5%
d. 8.4%
102.If net income is $150,000 and interest expense is $20,000 for Year 2, what is the rate earned on stockholders'equity for Year 2?
a. 6.9%
b. 14.5%
c. 16.4%
d. 13.8%
103.If net income is $250,000 and interest expense is $30,000 for Year 2, what are the earnings per share on commonstock for Year 2?
a. $4.16
b. $4.32
c. $4.02
d. $2.49
104.If net income is $250,000 and interest expense is $20,000 for Year 2, and the market price of common shares is$30, what is the price-earnings ratio on common stock for Year 2? (Round intermediate calculation to two decimalplaces and final answers to one decimal place.)
a. 7.5
b. 13.4
c. 12.1
d. 8.5
105.The numerator of the rate earned on common stockholders' equity ratio is
a.net income
b.net income minus preferred dividends
c.income before income tax
d.operating income minus interest expense
106.The numerator of the rate earned on total assets ratio is
a.net income
b.net income plus tax expense
c.net income plus interest expense
d.net income minus preferred dividends
107.The following information is available for Jase Company:
Market price per share of common stock$25.00
Earnings per share on common stock$1.25
Which of the following statements is correct?
a.The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earningsper share at the end of the year.
b.The price-earnings ratio is 5% and a share of common stock was selling for 5% more than the amount ofearnings per share at the end of the year.
c.The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earningsper share at the end of the year.
d.The market price per share and the earnings per share are not statistically related to each other.
108.The following information is available for Meyer Company:
Dividends per share of common stock$1.80
Market price per share of common stock$30.00
Which of the following statements is correct?
a.The dividend yield is 6.0%, which is of interest to investors seeking an increase in market price of theirstocks.
b.The dividend yield is 6.0%, which is of special interest to investors seeking to earn revenue on theirinvestments.
c.The dividend yield is 16.7%, which is of interest to bondholders.
d.The dividend yield is 16.7% which is an important measure of solvency.
109.The particular analytical measures chosen to analyze a company may be influenced by all of the following
except
a.industry type
b.capital structure
c.diversity of business operations
d.product quality or service effectiveness
110.Which of the following is
nota characteristic evaluated in ratio analysis?
a.liquidity
b.profitability
c.solvency
d.marketability