Reference no: EM131750881

Q1. The following information pertains to Swifty Company. Assume that all balance sheet amounts  represent average balance figures.

Total assets	$305000
Stockholders' equity-common	185000
Total stockholders' equity	266000
Sales revenue	107000
Net income	20100
Number of shares of common stock	7000
Common dividends	4200
Preferred dividends	7200

What is Swifty's payout ratio?

20.90%.

6%.

14%.

34%.

Q2. Whispering Winds Corp. had net income of $79130 and paid dividends of $31000 to common stockholders and $20000 to preferred stockholders in 2017. Whispering Winds Corp. common stockholders' equity at the beginning and end of 2017s was $495000 and $600000, respectively. Whispering Winds Corp. return on common stockholders' equity is

11%.

6%.

10%.

15%.

Q3. In a recent year Pina Colada Corp. had net income of $151000, interest expense of $28500, and income tax expense of $41300. What was Pina Colada Corp.'s times interest earned (rounded) for the year?

6.30

5.30

6.75

7.75