Question 1 if Ramtastic Corporation issues 4,650,000 shares of common stock at a $6/share par value, and if the market price of that stock at the time of issue is $13.00/share, then the value of Capital in Excess of Par in the equity section of the balance sheet is:
$88,350,000
$32,550,000
$27,900,000
$60,450,000
Question 2 Tate's EBT is $125,000. What is the average tax rate?
Before Tax Income (EBT ) Tax Rate
|
Before Tax Income (EBT )
|
Tax Rate
|
|
$0-$50,000
|
10%
|
|
$50,001-$75,000
|
15%
|
|
$75,001-$100,000
|
20%
|
|
$100,001-$350,000
|
25%
|
|
$350,001-$750,000
|
30%
|
|
$750,001-$5,000,000
|
35%
|
Question 3
Given the following information for Sandstone, Inc.: net income = $400,000; beginning of year retained earnings = $140,000; common stock dividends paid for the year = $112,000. Compute the end of year retained earnings.
$352,000
$0
$372,000
$288,000
$428,000
Question 4
You are given: Total Asset Turnover = 3.5 and Return on Assets = 7%. Compute Net Profit Margin:
2%
13%
24.5%
3.5%
10.5%
Question 5 Last year Biff Industries had an operating profit of $3,950,000, paid $270,000 in interest expense. The applicable income tax rate for the year was 31%. The company had 270,000 shares of common stock outstanding at the end of last year. What was Biff's EPS last year? The company has no preferred stock.
$13.63
$10.78
$15.63
$14.63
$9.40