When is the equity method used to account for long-term investments in stocks?

a)When the investment is between 20 - 50% of the voting stock, regardless of whether or not significant influence can be achieved.

b)

When the investment is greater than 50% of the voting stock, regardless of whether or not significant influence can be achieved.

c)

When the investment is greater than 50% of the voting stock and significant influence can be achieved.

d)When the investment is between 20 - 50% of the voting stock and significant influence can be achieved

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Trenton Company has provided the following information: Net income, $240,000; Preferred shares issued, 6,000; Average common shares issued, 24,000; Common cash dividends declared and paid, $30,000; Market price per share, $36 Average treasury shares of common stock, 4,000. What was Trenton's price earnings ratio?

3.0

5.1

3.4

4.5

The debt-to-equity ratio measures which of the following?

		Liquidity
		Solvency
		Profitability
		Market strength