Ivano Company Return on Common Stockholders' Equity Quiz

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Questions and Answers

What is the Times Interest Earned ratio based on the given information?

  • 4.5 times (correct)
  • 3 times
  • 2 times
  • 5 times

What is the Net Income based on the provided data?

  • P60,000
  • P42,000 (correct)
  • P90,000
  • P28,000

What is the Return on Common Equity based on the given figures?

  • 30%
  • 23% (correct)
  • 35%
  • 16%

What does the Dividend Yield measure?

<p>Return of investment in dividends (A)</p> Signup and view all the answers

What is the Market Value of Equity based on the provided data?

<p>P10,500,000 (C)</p> Signup and view all the answers

What is the P/E (Price-Earnings) Ratio calculated based on the given information?

<p>8 to 1 (D)</p> Signup and view all the answers

What is Ivano's return on common stockholders' equity for 2007, rounded to the nearest percentage point?

<p>21% (D)</p> Signup and view all the answers

What is the dividend yield for Duncan Co. in 2006?

<p>The dividend yield is 8.0%, which is of special interest to investors seeking current returns on their investments. (B)</p> Signup and view all the answers

What is the market price of a share of stock for a firm with 100,000 shares outstanding, a book value of equity of P3,000,000, and a market/book ratio of 3.5?

<p>P105.00 (C)</p> Signup and view all the answers

What is the price-to-earnings (P/E) ratio?

<p>The P/E ratio is a measure of the market's expectation of a company's future earnings performance. (B)</p> Signup and view all the answers

What is the formula for calculating the market/book value ratio?

<p>Market/Book value ratio = Market price per share / Book value per share (B)</p> Signup and view all the answers

What is the formula for calculating the dividend yield?

<p>Dividend yield = Dividends per share / Market price per share (D)</p> Signup and view all the answers

What was Mildred's net sales for the year?

<p>P672,000 (D)</p> Signup and view all the answers

What was the gross margin for 2007?

<p>P200,000 (A)</p> Signup and view all the answers

What is the dividend yield for Recto Co.?

<p>22.0% (B)</p> Signup and view all the answers

What is the accounts receivable turnover for Blackwood Co.?

<p>4 to 1 (A)</p> Signup and view all the answers

If Salvacion Company's dividend yield ratio is 0.08, what is the price earnings ratio?

<p>-0.12 (D)</p> Signup and view all the answers

What was the inventory turnover for Blackwood Co. in 2007?

<p>4 to 1 (A)</p> Signup and view all the answers

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