Q1. The following information pertains to Swifty Company. Assume that all balance sheet amounts represent average balance figures.
|
Total assets
|
$305000
|
|
Stockholders' equity-common
|
185000
|
|
Total stockholders' equity
|
266000
|
|
Sales revenue
|
107000
|
|
Net income
|
20100
|
|
Number of shares of common stock
|
7000
|
|
Common dividends
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4200
|
|
Preferred dividends
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7200
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What is Swifty's payout ratio?
20.90%.
6%.
14%.
34%.
Q2. Whispering Winds Corp. had net income of $79130 and paid dividends of $31000 to common stockholders and $20000 to preferred stockholders in 2017. Whispering Winds Corp. common stockholders' equity at the beginning and end of 2017s was $495000 and $600000, respectively. Whispering Winds Corp. return on common stockholders' equity is
11%.
6%.
10%.
15%.
Q3. In a recent year Pina Colada Corp. had net income of $151000, interest expense of $28500, and income tax expense of $41300. What was Pina Colada Corp.'s times interest earned (rounded) for the year?
6.30
5.30
6.75
7.75