Question Details

Data concerning Bouerneuf Company's common stock 



1.	Clover Company's net income last year was $80,000. The company paid preferred dividends of $12,000 and its average common stockholders' equity was $340,000. The company's return on common stockholders' equity for the year was closest to
a.	27.1%.
b.	3.5%.
c.	20.0%.
d.	23.5%.


	

	2.	The average stockholders’ equity for Holloway Co. last year was $2,000,000. Included in this figure was $200,000 par value of 8% preferred stock. If the return on common stockholders' equity was 12.5% for the year, net income was
a.	$225,000.
b.	$250,000.
c.	$241,000.
d.	$234,000.




	3.	Wellston Company's net income last year was $300,000. The company has 100,000 shares of common stock and 30,000 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The company declared and paid dividends last year of $1.90 per share on the common stock and $1.70 per share on the preferred stock. The earnings per share of common stock is closest to
a.	$2.49.
b.	$1.10.
c.	$3.51.
d.	$3.00.


	
	4.	Lew Company's net income was $80,000 last year. The company has 20,000 shares of common stock and 5,000 shares of $100 par value, 7% preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The earnings per share of common stock was
a.	$4.00.
b.	$3.20.
c.	$2.25.
d.	$3.72.


	

	5.	Data concerning Bouerneuf Company's common stock follow:

Book value per share	$24.00
Market value per share	$18.00
Earnings per share	$  6.00
Par value per share	$  4.00
Dividend per share	$  1.00

The price-earnings ratio would be
a.	2.0.
b.	2.7.
c.	3.0.
d.	4.0.





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