1. When an industry ratios are presented in standard sources, which one of the following pairs shows a reference or bench mark against which to measure a company’s performance.
A. The return on equity percent and the current ratio.
B. The mode and the normal distribution
C. The median and the normal interquartile range
D. The mean and the standard deviation
2. Which one of the following is a true statement?
a. Common stocks have higher priority claim than debts
b. common dividends cannot be paid if preferred dividends are in arrears on cumulative preferred stock
c. bondholders always have voting power
d. investors can sue manager for nonpayment of dividends