Trenton Company has provided the following information:

• Net income, $240,000;
• Preferred shares issued, 6,000;
• Average number of common stock shares issued, 24,000;
• Cash dividends declared and paid on common stock, $30,000;
• Market price per share, $36;
• Average treasury shares of common stock, 4,000.

What is Trenton's earnings per share?

A $8.00.

B $7.00.

C $10.50.

D $12.00.

44 Trenton Company has provided the following information:

• Net income, $240,000;
• Preferred shares issued, 6,000;
• Average number of common shares issued, 24,000;
• Cash dividends declared and paid on common stock, $30,000;
• Market price per share, $36;
• Average treasury shares of common stock, 4,000.

What is Trenton's price/earnings ratio?

A 3.0

B 5.1

C 3.4

D 4.5

45 Which of the following is not a measure of solvency?

A Debt-to-equity ratio.

B Cash coverage ratio.

C Times interest earned ratio.

D Earnings per share.

46 Main Street Company paid out $2.30 in dividends per share of common stock and had earnings per share of $5.00 during 2014. The market price of the stock on December 31, 2014 was $21.00 per share. There were 15,000 shares of stock outstanding for the entire year. The dividend yield as of December 31, 2014 is closest to:

A 16.43%

B 10.95%

C 9.13%

D 46.00%

47 Lee Company has provided the following information:

• Cash flow from operating activities, $240,000
• Net income, $204,000
• Interest expense, $20,000
• Interest cash payments, $10,000
• Income tax payments, $140,000
• Income tax expense, $136,000

Lee's quality of income ratio is closest to:

A 1.18

B 0.85

C 1.76

D 0.74

48 Rice Company, a retailer, has provided the following information pertaining to its recent year of operation:

• Net income, $100,000
• Accounts receivable increased $9,000
• Prepaid insurance decreased $3,000
• Depreciation expense was $15,000
• Gain on sale of land, $2,000
• Wages payable decreased $7,000
• Unearned revenue increased $11,000

Using the indirect method, how much was Rice's net cash provided by operating activities?

A $89,000.

B $115,000.

C $125,000.

D $111,000.

Answer rating: 100% (QA)

Answer 43 D 1200 Explanation Earnings per share Net income for equity share holders Avg no of common ... View the full answer