Q29:

The current ratio is

Select one:

a.

calculated by subtracting current liabilities from current assets.

b.

calculated by dividing current liabilities by current assets.

c.

used to evaluate a company's solvency and long-term debt paying ability.

d.

used to evaluate a company's liquidity and short-term debt paying ability.

Q30:

if Ali Co. has common share ( $ 0.25 par value) $100,000. the market value per share is $ 2. the company generates net income as $ 40,000 and dividends announced is $ 10,000. the dividends pay-out ratio is

a.

50%

b.

8 times

c.

4 times

d.

25%