Exam 14: Capital Budgeting Decisions

Kearin Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $8,000.The market price of common stock at the end of Year 2 was $2.02 per share. The company's return on equity for Year 2 is closest to:

Remley Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $3,000.The market price of common stock at the end of Year 2 was $2.70 per share. Required: a.What is the company's times interest earned for Year 2? b.What is the company's debt-to-equity ratio at the end of Year 2? c.What is the company's equity multiplier at the end of Year 2? d.What is the company's earnings per share for Year 2? e.What is the company's price-earnings ratio for Year 2? f.What is the company's dividend payout ratio for Year 2? g.What is the company's dividend yield ratio for Year 2? h.What is the company's book value per share at the end of Year 2?

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's average collection period (age of receivables)for Year 2 is closest to:

Earnings per share is computed by multiplying net income by the average number of common shares outstanding.

Mormino Corporation's income statement appears below: The company's gross margin percentage is closest to:

Guttery Corporation has provided the following financial data from its balance sheet: Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000. The company's total asset turnover for Year 2 is closest to:

Freiman Corporation's most recent balance sheet and income statement appear below: The average sale period for Year 2 is closest to:

Rubendall Corporation's total current assets are $310,000,its noncurrent assets are $630,000,its total current liabilities are $250,000,its long-term liabilities are $300,000,and its stockholders' equity is $390,000. Required: Compute the company's current ratio.Show your work!

Symons Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $2,500.The market price of common stock at the end of Year 2 was $2.01 per share. The company's dividend yield ratio for Year 2 is closest to:

Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720. The inventory turnover for Year 2 is closest to:

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below: The debt-to-equity ratio at the end of Year 2 is closest to:

Sperle Corporation has provided the following data concerning its stockholders' equity accounts: Net income for Year 2 was $30,400.Dividends on common stock during Year 2 totaled $6,400.The market price of common stock at the end of Year 2 was $3.08 per share. The company's earnings per share for Year 2 is closest to:

An increase in the number of shares of common stock outstanding will increase a company's price-earnings ratio if the market price per share remains unchanged.

A company could improve its acid-test ratio by selling some equipment it no longer needs for cash.

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's total asset turnover for Year 2 is closest to:

If a company's operating cycle is much longer than its average payment period for suppliers,it creates the need to borrow money to fund its inventories and accounts receivable.

Recher Corporation's common stock has a par value of $3 per share and has been stable at a total value of $270,000 on the company's balance sheet for several years.The total stockholders' equity at the end of this year was $1,023,000 and at the beginning of the year was $1,010,000.Net income for the year was $17,500.Dividends on common stock during the year totaled $4,500.The market price of common stock at the end of the year was $3.76 per share. The company's earnings per share is closest to:

Lasch Corporation has provided the following financial data from its balance sheet and income statement: The company's equity multiplier at the end of Year 2 is closest to:

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's inventory turnover for Year 2 is closest to:

Fayer Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $4,500.The market price of common stock at the end of Year 2 was $10.88 per share. The company's debt-to-equity ratio at the end of Year 2 is closest to: