41. A company had net income of $250,000. On January 1, there were 12,000 shares of common stock outstanding. On May 1, the company issued an additional 9,000 shares of common stock. The company declared a $7,900 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company had earnings per share of:
A. $13.45
B. $13.89
C. $11.53
D. $26.90
E. Amount cannot be determined as problem does not state if there are any dividends in arrears.
42. The price-earnings ratio is calculated by dividing:
A. Market value per share by earnings per share.
B. Earnings per share by market value per share.
C. Dividends per share by earnings per share.
D. Dividends per share by market value per share.
E. Market value per share by dividends per share.
43. A company has a market value per share of $73.00. Its net income is $1,750,000 and the weighted-average number of shares outstanding is 350,000. The company's price-earnings ratio is equal to:
A. 20.9
B. 4.2
C. 14.6
D. 20.0
E. 6.8
44. A company has net income of $850,000. It also has 125,000 weighted-average common shares outstanding and a market value per share of $115. The company's price-earnings ratio is equal to:
A. 16.9
B. 14.7
C. 92.0
D. 13.5
E. 8.0
45. A company has net income of $2,800,000. It also has 400,000 weighted-average common shares outstanding and a price-earnings ratio of 20. What is the market value per share of this company's stock?
A. $2.85
B. $140
C. $20,000
D. $.35
E. $2,857.14
46. A company has net income of $3,000,000. It has 600,000 weighted-average common shares outstanding and a price-earnings ratio of 17. What is the market value per share of this company's stock?
A. $5
B. $85
C. $176,470.58
D. $84.90
E. $17
47. Dividend yield is the percent of cash dividends paid to common shareholders relative to the:
A. Common stock's market value.
B. Earnings per share.
C. Investors' purchase price of the stock.
D. Amount of retained earnings.
E. Amount of cash.
48. Stocks that pay relatively large cash dividends on a regular basis are referred to as:
A. Small capital stocks
B. Mid capital stocks
C. Growth stocks
D. Large capital stocks
E. Income stocks
49. A company paid $0.48 in cash dividends per share. It has earnings per share of $4.20 and a market price per share of $30.00. Its dividend yield equals:
A. 1.60%
B. 6.25%
C. 8.75%
D. 11.40%
E. 14.00%
50. A company paid $0.75 in cash dividends per share. It has earnings per share of $3.50 and a market price per share of $37.50. Its dividend yield equals:
A. 11.7%
B. 2.0%
C. 10.9%
D. 21.4%
E. 46.7%