1.Mackerel Company has provided the following data: Common stock: Shares outstanding .................................. 20,000 Market value, December 31 ................... $150,000 Book value, December 31 ...................... $80,000 Dividends paid ........................................ $40,000 Preferred stock, 8%, 100 par ..................... $100,000 Net income ................................................ $100,000 Interest on long-term debt ......................... $10,000 The price-earnings ratio is closest to:
1.Mackerel Company has provided the following data:
Common stock:
Shares outstanding .................................. 20,000
Market value, December 31 ................... $150,000
Book value, December 31 ...................... $80,000
Dividends paid ........................................ $40,000
Net income ................................................ $100,000
Interest on long-term debt ......................... $10,000
The price-earnings ratio is closest to:
- A) 1.50
- B) 2.50
- C) 1.63
- D) 2.88
- Hammer Company has 40,000 shares of common stock outstanding. The following data
pertain to these shares for the most recent year:
Price originally issued.................... $25 per share
Book value, December 31.............. $40 per share
Market value, January 1................. $50 per share
Market value, December 31........... $60 per share
The total dividend on common stock was $480,000. Cammer Company's dividend yield
ratio for the year was:
- A) 20%
- B) 24%
- C) 48%
- D) 30%
- Trouble Company has provided the following data:
Sales........................................................... $5,000,000
Interest expense......................................... $30,000
Total assets, beginning of year .................. $185,000
Total assets, end of year ............................ $215,000
Tax rate ...................................................... 30%
Tribble Company's net income was:
- A) $1,000 C) $22,000
- B) $31,000 D) $10,000
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