Question Details

How much in dividends did the firm pay 


1. Identify which financial statements are appropriate to use for each  event listed below.
Event 1: Can the firm meet all its short-term obligations?
Event 2: How much of the firm- earnings are put back into the company for reinvestment, and how much is paid out as dividend?
a. Balance Sheet, Income Statement			b. Balance Sheet, Statement of Cash Flow
c. Balance Sheet, Statement of Stockholders’ Equity	d. Income Statement, Statement of Cash Flows
e. Income Statement, Statement of Stockholder- Equity

2. If the ROAs are the same, but the ROEs are different between the two firms, what is causing this disparity?
a. Profits	   b. Revenues    c. Debt      d. Dividends     e. Taxes
3. I checked the Microsoft stock price at 9:12am this morning. It was $24.88. The last 12 month trailing (ttm) net earnings is $14.58 billion with 9 billion shares. What is the 12 month trailing P/E ratio?
a. 15.36      b. 13.31    c. 17.88     d. 12.21     e. 20.33 

4. Which of the following statements is CORRECT?
a.	Dividends paid reduce the net income that is reported on a company- income statement.
b.	If a company uses some of its bank deposits to buy short-term, highly liquid marketable securities, this will cause a decline in its current assets as shown on the balance sheet.
c.	If a company issues new long-term bonds to purchase fixed assets during the current year, this will increase both its reported current assets and current liabilities at the end of the year.
d.	Accounts receivable are reported as a current liability on the balance sheet.
e.	If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's balance.
	
	
5. On 12/31/08, Hite Industries reported retained earnings of $525,000 on its balance sheet, and it reported that it had $135,000 of net income
 during the year.  On its previous balance sheet, at 12/31/07, the company had reported $445,000 of retained earnings.  No shares were
 repurchased during 2008.  How much in dividends did the firm pay during 2008?
a. $49,638     b. $52,250     c. $55,000     d. $57,750     e. $60,638



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