66) What kind of information does the rate of return on common stockholders' equity provide?
A) What proportion of each dollar of sales revenue generates net income
B) How much profit a company generates relative to its stockholders' equity
C) How much profit each shareholder makes when he sells his shares of stock
D) How much merchandise is returned by customers
67) When comparing a company's results from one year to the next, what kind of information does a company's earnings per share figure provide?
A) Whether the company generates more or less profit per sales dollar
B) Whether the market price of a share of stock has gone up or down
C) Whether the company's total net income has gone up or down
D) Whether the amount of profit generated by one share of stock has gone up or down
68) What kind of information does the dividend yield provide?
A) How much an investor can expect to receive in dividends
B) How often a company pays dividends
C) How much profit each shareholder makes when he sells his shares of stock
D) How much dividend revenue a company earns on its short-term investments
69) What kind of information does the dividend payout ratio provide?
A) How much the dividend is in proportion to the stock's market price
B) What proportion of a share's earnings are paid out in dividends
C) How much profit each shareholder makes when he sells his shares of stock
D) How much dividend revenue a company earns on its short-term investments
70) Which of the following describes the book value per share of common stock?
A) Common equity divided by number of common shares outstanding
B) The current market value of a share of stock
C) The amount of net income per each share of stock
D) The par value of a share of stock
71) Which of the following factors might suggest that a company is having difficulty selling its inventory?
A) An increase in receivables
B) A buildup of inventory balances
C) An increase in total debt
D) An increase in interest expense
72) Which of the following is a "red flag" suggesting that a company may be in trouble?
A) A decline in days in inventory
B) An increase in dividend payout
C) A reduction in inventories
D) Cash flow from operations lower than net income
73) Which of the following is a "red flag" suggesting that a company may be in trouble?
A) A decline in days in inventory
B) An increase in dividend payout
C) A buildup of inventories
D) Cash flow from operations is higher than net income
74) Which of the following is a "red flag" suggesting that a company may be in trouble?
A) Inconsistent movements among sales, inventory, and receivables
B) A reduction in the debt ratio
C) A decrease in inventory levels
D) Cash flow from operations is higher than net income
75) The current ratio is used for which kind of evaluation?
A) The ability of a company to pay its current liabilities
B) The ability of a company to collect its receivables
C) The overall profitability of a company
D) Evaluating stock in a company from an investor's perspective