The information is condensed data taken from the balance sheet at the end of the year:
Net income: $300,000
Stockholder’s Equity
Preferred 7% stock, $100 par $100,000
Common stock, $20 par $200,000
Paid-in capital in excess of par—common stock $50,000
Retained earnings $300,000
Cash Dividend paid on common stock $ 40,000
Common stock was selling for $56 at the end of the current year.
I need: Dividend yield on common stock, earnings per share on common stock and, price-earnings ratio on common stock.
Also,
What type of retail clothing store with the highest ratio of net sales to assets is most likely?
A. Men’s clothing
B. Home Appliances
1. A company with working capital of $500,000 receives cash for the entire balance on a $120,000 short-term note receivable (current asset). The working capital immediately after the receipt is
A) $380,000
B) $500,000
2. If the acid-test ratio is 1.25, the receipt of cash from the sale of marketable securities at their book value will cause the ratio to
A) decrease
B) not affected
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