E-PolyLearning

1. A technique that is used in comparative analysis of financial statement is
a. graphical analysis
b. preference analysis
c. common size analysis
d. returning analysis
View Answer Report Discuss 50-50!
Answer: (c).common size analysis

2. The net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be
a. 0.00114
b. 0.114
c. 0.12 times
d. 0.12
View Answer Report Discuss 50-50!
Answer: (b).0.114

3. The price per share is $30 and earnings per share is $3.5 then price for earnings ratio would be
a. 8.57 times
b. 0.0857
c. 0.11 times
d. 0.11
View Answer Report Discuss 50-50!
Answer: (a).8.57 times

4. The price per share is $25 and the cash flow per share is $6 then the price to cash flow ratio would be
a. 0.24 times
b. 4.16 times
c. 0.0416
d. 0.24
View Answer Report Discuss 50-50!
Answer: (b).4.16 times

5. The low price for earnings ratio is the result of
a. low riskier firms
b. high riskier firms
c. low dividends paid
d. high marginal rate
View Answer Report Discuss 50-50!
Answer: (a).low riskier firms

Page 1 of 25