10. YOU Company has 40,000 shares of common stock outstanding that it originally issued for P30 per share. The following data pertains to these shares for the most recent year: Book value, December 31 – P60 per share3; Market value, January 1- P75 per share; Market value, December 31 - P80 per share. common stock was P360,000. The dividend yield ratio for the year was: A. 11.25% The total dividend on В. 12.00% C. 15.00% D. 30.00% 11. As a short-term creditor concerned with a company's ability to meet its financial obligation to you, which one of the following combinations of ratios would you most likely prefer? Current ratio TIE Debt Ratio A. 0.5 0.5 0.33 В. 1.0 1.0 0.50 С. 1.5 1.5 0.50 D. 2.0 1.0 0.67 25 0 71
10. YOU Company has 40,000 shares of common stock outstanding that it originally issued for P30 per share. The following data pertains to these shares for the most recent year: Book value, December 31 – P60 per share3; Market value, January 1- P75 per share; Market value, December 31 - P80 per share. common stock was P360,000. The dividend yield ratio for the year was: A. 11.25% The total dividend on В. 12.00% C. 15.00% D. 30.00% 11. As a short-term creditor concerned with a company's ability to meet its financial obligation to you, which one of the following combinations of ratios would you most likely prefer? Current ratio TIE Debt Ratio A. 0.5 0.5 0.33 В. 1.0 1.0 0.50 С. 1.5 1.5 0.50 D. 2.0 1.0 0.67 25 0 71
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer 10-11 only and show solutions. Thank you!
![IENTIA
7. AHR Company has provided the following data: Inventory and prepaid expenses, P35,000; Current ratio, 2.2;
Acid-test ratio 1.5. AHR Company's current liabilities were:
A. P40,000
В. Р50,000
C. P63,000
QUIS
D. P44,100
ESS Company's current liabilities are P50,000, its long-term liabilities are P150,000, and its working capital is
P80,000. If ESS Company's debt-to-equity ratio is 0.32, its total long-term assets must equal:
8.
А. Р625,000
B. P745,000
C. P825,000
D. P695,000
9. The market price per share of TEE Co. stock at the beginning of the year was P60.00 and at the end of the year
was P72.00. Net income for the year was P48,000. Dividends to the preferred stockholders for the year totaled
P12,000, and dividends of P2.50 per share were paid on the 6,000 shares of common stock outstanding during
the year. The price-earnings ratio at year end was:
А.
В.
10
С.
11
D.
12
10. YOU Company has 40,000 shares of common stock outstanding that it originally issued for P30 per share. The
following data pertains to these shares for the most recent year: Book value, December 31 – P60 per share;
Market value, January 1 – P75 per share; Market value, December 31 – P80 per share.
common stock was P360,000. The dividend yield ratio for the year was:
A. 11.25%
The total dividend on
В.
12.00%
С.
15.00%
D.
30.00%
11. As a short-term creditor concerned with a company's ability to meet its financial obligation to you, which one
of the following combinations of ratios would you most likely prefer?
Current ratio
TIE
Debt Ratio
А.
0.5
0.5
0.33
В.
1.0
1.0
0.50
С.
1.5
1.5
0.50
D.
2.0
1.0
0.67
Е.
2.5
0.5
0.71
SITY](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3d5fddb4-c3fe-4f70-b555-04face3360fb%2F3b509a95-0ca9-4956-abc7-1224aa2daa32%2F2a9az7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:IENTIA
7. AHR Company has provided the following data: Inventory and prepaid expenses, P35,000; Current ratio, 2.2;
Acid-test ratio 1.5. AHR Company's current liabilities were:
A. P40,000
В. Р50,000
C. P63,000
QUIS
D. P44,100
ESS Company's current liabilities are P50,000, its long-term liabilities are P150,000, and its working capital is
P80,000. If ESS Company's debt-to-equity ratio is 0.32, its total long-term assets must equal:
8.
А. Р625,000
B. P745,000
C. P825,000
D. P695,000
9. The market price per share of TEE Co. stock at the beginning of the year was P60.00 and at the end of the year
was P72.00. Net income for the year was P48,000. Dividends to the preferred stockholders for the year totaled
P12,000, and dividends of P2.50 per share were paid on the 6,000 shares of common stock outstanding during
the year. The price-earnings ratio at year end was:
А.
В.
10
С.
11
D.
12
10. YOU Company has 40,000 shares of common stock outstanding that it originally issued for P30 per share. The
following data pertains to these shares for the most recent year: Book value, December 31 – P60 per share;
Market value, January 1 – P75 per share; Market value, December 31 – P80 per share.
common stock was P360,000. The dividend yield ratio for the year was:
A. 11.25%
The total dividend on
В.
12.00%
С.
15.00%
D.
30.00%
11. As a short-term creditor concerned with a company's ability to meet its financial obligation to you, which one
of the following combinations of ratios would you most likely prefer?
Current ratio
TIE
Debt Ratio
А.
0.5
0.5
0.33
В.
1.0
1.0
0.50
С.
1.5
1.5
0.50
D.
2.0
1.0
0.67
Е.
2.5
0.5
0.71
SITY
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