141. The following information is available for Dorman Co.:
|
2009
|
Dividends per share of common stock
|
$ 1.40
|
Market price per share of common stock
|
17.50
|
|
|
Which of the following statements is correct?
A. The dividend yield is 8.0%, which is of interest to investors seeking an increase in market price of their stocks.
B. The dividend yield is 8.0%, which is of special interest to investors seeking current returns on their investments.
C. The dividend yield is 12.5%, which is of interest to bondholders.
D. The dividend yield is 8.0 times the market price, which is important in solvency analysis.
142. 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
143. The best way to study the relationship of the components within a financial statement is to prepare
A. ratio analysis.
B. common size statements.
C. a trend analysis.
D. profitability analysis.
144. Which one of the following is not a characteristic generally evaluated in ratio analysis?
A. Liquidity
B. Profitability
C. Solvency
D. Marketability
145. Short-term creditors are usually most interested in assessing
A. marketability.
B. profitability.
C. operating results.
D. solvency.
146. A common measure of liquidity is
A. ratio of net sales to assets.
B. dividends per share of common stock.
C. receivable turnover.
D. profit margin.
147. Toledo Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2009. The weighted average number of shares outstanding in 2009 was 50,000 shares. Toledo Corporation's common stock is selling for $50 per share on the New York Stock Exchange.
Toledo Corporation's price-earnings ratio is
A. 10 times.
B. 5 times.
C. 2 times.
D. 8 times.
148. A company that is leveraged is one that
A. contains debt financing.
B. contains equity financing.
C. has a high current ratio.
D. has a high earnings per share.
149. Use the following information for questions 64-70.
The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments
|
|
$ 40,000
|
|
Accounts receivable (net)
|
|
25,000
|
|
Inventory
|
|
20,000
|
|
Property, plant and equipment
|
|
210,000
|
|
|
Total Assets
|
$295,000
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
Current liabilities
|
|
60,000
|
|
Long-term liabilities
|
|
85,000
|
|
Stockholders’ equity-common
|
|
150,000
|
|
|
Total Liabilities and stockholders’ equity
|
$295,000
|
|
|
|
|
|
|
|
|
|
Income Statement
Sales
|
|
$ 85,000
|
|
Cost of goods sold
|
|
45,000
|
|
Gross margin
|
|
40,000
|
|
Operating expenses
|
|
20,000
|
|
|
Net income
|
$ 20,000
|
|
|
|
|
|
|
|
|
|
Number of shares of common stock
|
|
6,000000
|
Market price of common stock
|
|
$20
|
Dividends per share
|
|
0.90
|
Cash provided by operations
|
|
$30,000
|
|
|
|
What is the current ratio for this company? Round your answer to one decimal point.
A. 0.60
B. 1.16
C. 0.80
D. 1.42
150. Use the following information for questions 64-70.
The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments
|
|
$ 40,000
|
|
Accounts receivable (net)
|
|
25,000
|
|
Inventory
|
|
20,000
|
|
Property, plant and equipment
|
|
210,000
|
|
|
Total Assets
|
$295,000
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
Current liabilities
|
|
60,000
|
|
Long-term liabilities
|
|
85,000
|
|
Stockholders’ equity-common
|
|
150,000
|
|
|
Total Liabilities and stockholders’ equity
|
$295,000
|
|
|
|
|
|
|
|
|
|
Income Statement
Sales
|
|
$ 85,000
|
|
Cost of goods sold
|
|
45,000
|
|
Gross margin
|
|
40,000
|
|
Operating expenses
|
|
20,000
|
|
|
Net income
|
$ 20,000
|
|
|
|
|
|
|
|
|
|
Number of shares of common stock
|
|
6,000000
|
Market price of common stock
|
|
$20
|
Dividends per share
|
|
0.90
|
Cash provided by operations
|
|
$30,000
|
|
|
|
What is the receivable turnover for this company? Round your answer to one decimal point.
A. 3.4 times
B. 2.8 times
C. 2.0 times
D. 3.0 times