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Northwest Lumber had a profit margin of 5.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8.What was the firm's ROE?


A) 12.79%
B) 13.47%
C) 14.18%
D) 14.88%
E) 15.63%

F) D) and E)
G) A) and B)

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Bostian, Inc.has total assets of $625,000.Its total debt outstanding is $185,000.The Board of Directors has directed the CFO to move towards a debt-to-assets ratio of 55%.How much debt must the company add or subtract to achieve the target debt ratio?


A) $158,750
B) $166,688
C) $175,022
D) $183,773
E) $192,962

F) A) and B)
G) A) and C)

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pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm hasno amortization charges, it does not lease any ass ets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.  Balance Shet (Millions of $ )  \text { Balance Shet (Millions of } \$ \text { ) }  Assets 2016‾ Cash and securities $1,554.00 Accounts receivable 9,660.00 inventories 13,440.00 Total current assets $24,654.00 Net plant and equipment 17,346.00 Total assets $42,000.00 Liabilities and Equity  Accounts payable $7,980.00 Notes payable 5,880.00 Accruals 4,620.00 Total current liabilities $18,480.00 Cong-term bonds 10,920.00 Cotal liabilities $29,400.00 Common stock 3,360.00 Retained earnings 9,240.00 Total common equity $12,600.00 Total liabilities and equity $42,000.00\begin{array}{lr}\text { Assets } & \underline{2016} \\\text { Cash and securities } & \$ 1,554.00 \\\text { Accounts receivable } & 9,660.00 \\\text { inventories } & 13,440.00 \\\text { Total current assets } & \$ 24,654.00 \\\text { Net plant and equipment } & 17,346.00 \\\text { Total assets } & \$ 42,000.00 \\\text { Liabilities and Equity } \\\text { Accounts payable } & \$ 7,980.00 \\\text { Notes payable } & 5,880.0 0\\\text { Accruals } & 4,620.00\\\text { Total current liabilities } & \$ 18,480.00 \\\text { Cong-term bonds } & 10,920.00 \\\text { Cotal liabilities } & \$ 29,400.0 0\\\text { Common stock } & 3,360.00 \\\text { Retained earnings } & 9,240.00 \\\text { Total common equity } & \$ 12,600.00 \\\text { Total liabilities and equity } & \$ 42,000.00\end{array}  Income Statement (Millions of $)  2016 Net sales $58,800.00 Operating costs except depr’n $55,274.00 Depreciation $1,029.00 Earnings bef int and taxes (EBIT)  $2,497.00 Less interest 1,050.00 Earnings before taxes (EBT)  $1,447.00 Taxes $314.00 Net income $1,133.00 Dther data:  Shares outstanding (millions)  175.00 Common dividends 509.83 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 21.7% Year-end stock price $77.69\begin{array}{lr}\text { Income Statement (Millions of \$) } & 2016 \\\text { Net sales } & \$ 58,800.00 \\\text { Operating costs except depr'n } & \$ 55,274.00 \\\text { Depreciation } & \$ 1,029.00\\\text { Earnings bef int and taxes (EBIT) } & \$ 2,497.00 \\\text { Less interest } & 1,050.00 \\\text { Earnings before taxes (EBT) } & \$ 1,447.00 \\\text { Taxes } & \$ 314.00 \\\text { Net income } & \$ 1,133.00\\\text { Dther data: }\\\text { Shares outstanding (millions) } & 175.00 \\\text { Common dividends } & 509.83 \\\text { Int rate on notes payable \& L-T bonds } & 6.25 \% \\\text { Federal plus state income tax rate } & 21.7 \% \\\text { Year-end stock price } & \$ 77.69\end{array} -Refer to the data for Pettijohn Inc.What is the firm's days sales outstanding? Assume a 360-day year for this calculation.


A) 48.17
B) 50.71
C) 53.38
D) 56.19
E) 59.14

F) D) and E)
G) B) and E)

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pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm hasno amortization charges, it does not lease any ass ets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.  Balance Shet (Millions of $ )  \text { Balance Shet (Millions of } \$ \text { ) }  Assets 2016‾ Cash and securities $1,554.00 Accounts receivable 9,660.00 inventories 13,440.00 Total current assets $24,654.00 Net plant and equipment 17,346.00 Total assets $42,000.00 Liabilities and Equity  Accounts payable $7,980.00 Notes payable 5,880.00 Accruals 4,620.00 Total current liabilities $18,480.00 Cong-term bonds 10,920.00 Cotal liabilities $29,400.00 Common stock 3,360.00 Retained earnings 9,240.00 Total common equity $12,600.00 Total liabilities and equity $42,000.00 Income Statement (Millions of $)  2016 Net sales $58,800.00 Operating costs except depr’n $55,274.00 Depreciation $1,029.00 Earnings bef int and taxes (EBIT)  $2,497.00 Less interest 1,050.00 Earnings before taxes (EBT)  $1,447.00 Taxes $314.00 Net income $1,133.00 Dther data:  Shares outstanding (millions)  175.00 Common dividends 509.83 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 21.7% Year-end stock price $77.69\begin{array}{lr}\text { Assets } & \underline{2016} \\\text { Cash and securities } & \$ 1,554.00 \\\text { Accounts receivable } & 9,660.00 \\\text { inventories } & 13,440.00 \\\text { Total current assets } & \$ 24,654.00 \\\text { Net plant and equipment } & 17,346.00 \\\text { Total assets } & \$ 42,000.00 \\\text { Liabilities and Equity } \\\text { Accounts payable } & \$ 7,980.00 \\\text { Notes payable } & 5,880.0 0\\\text { Accruals } & 4,620.00\\\text { Total current liabilities } & \$ 18,480.00 \\\text { Cong-term bonds } & 10,920.00 \\\text { Cotal liabilities } & \$ 29,400.0 0\\\text { Common stock } & 3,360.00 \\\text { Retained earnings } & 9,240.00 \\\text { Total common equity } & \$ 12,600.00 \\\text { Total liabilities and equity } & \$ 42,000.00\\\\\text { Income Statement (Millions of \$) } & 2016 \\\text { Net sales } & \$ 58,800.00 \\\text { Operating costs except depr'n } & \$ 55,274.00 \\\text { Depreciation } & \$ 1,029.00\\\text { Earnings bef int and taxes (EBIT) } & \$ 2,497.00 \\\text { Less interest } & 1,050.00 \\\text { Earnings before taxes (EBT) } & \$ 1,447.00 \\\text { Taxes } & \$ 314.00 \\\text { Net income } & \$ 1,133.00\\\text { Dther data: }\\\text { Shares outstanding (millions) } & 175.00 \\\text { Common dividends } & 509.83 \\\text { Int rate on notes payable \& L-T bonds } & 6.25 \% \\\text { Federal plus state income tax rate } & 21.7 \% \\\text { Year-end stock price } & \$ 77.69\end{array} -Refer to the data for Pettijohn Inc.What is the firm's TIE?


A) 1.73
B) 1.93
C) 2.14
D) 2.38
E) 2.62

F) D) and E)
G) B) and C)

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LeCompte Corp.has $312,900 of assets, and it uses only common equity capital (zero debt) .Its sales for the last year were $620,000, and its net income after taxes was $24,655.Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%.What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?


A) 7.57%
B) 7.95%
C) 8.35%
D) 8.76%
E) 9.20%

F) B) and E)
G) A) and B)

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A firm wants to strengthen its financial position.Which of the following actions would increase its current ratio?


A) Use cash to increase inventory holdings.
B) Reduce the company's days' sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment.
C) Use cash to repurchase some of the company's own stock.
D) Borrow using short-term debt and use the proceeds to repay debt that has a maturity of more than one year.
E) Issue new stock and then use some of the proceeds to purchase additional inventory and hold the remainder as cash.

F) None of the above
G) A) and E)

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Determining whether a firm's financial position is improving or deteriorating requires analyzing more than the ratios for a given year.Trend analysis is one method of measuring changes in a firm's performance over time.

A) True
B) False

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Heaton Corp.sells on terms that allow customers 45 days to pay for merchandise.Its sales last year were $425,000, and its year-end receivables were $60,000.If its DSO is less than the 45-day credit period, then customers are paying on time.Otherwise, they are paying late.By how much are customers paying early or late? Base your answer on this equation: DSO − Credit period = days early or late, and use a 365-day year when calculating the DSO.A positive answer indicates late payments, while a negative answer indicates early payments.


A) 6.20
B) 6.53
C) 6.86
D) 7.20
E) 7.56

F) B) and C)
G) None of the above

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Which of the following statements is CORRECT?


A) If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their market-to-book ratios must also be the same.
B) If Firms X and Y have the same P/E ratios, then their market-to-book ratios must also be the same.
C) If Firms X and Y have the same net income, number of shares outstanding, and price per share, then their P/E ratios must also be the same.
D) If Firms X and Y have the same earnings per share and market-to-book ratio, they must have the same price earnings ratio.
E) If Firm X's P/E ratio exceeds that of Firm Y, then Y is likely to be less risky and also to be expected to grow at a faster rate.

F) B) and C)
G) A) and E)

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One problem with ratio analysis is that relationships can be manipulated.For example, if our current ratio is greater than 1.5, then borrowing on a short-term basis and using the funds to build up our cash account would cause the current ratio to increase.

A) True
B) False

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If a firm finances with only debt and common equity, and if its equity multiplier is 3.0, then its debt ratio must be 0.667.

A) True
B) False

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Considered alone, which of the following would increase a company's current ratio?


A) An increase in accounts payable.
B) An increase in net fixed assets.
C) An increase in accrued liabilities.
D) An increase in notes payable.
E) An increase in accounts receivable.

F) B) and C)
G) A) and D)

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Rappaport Corp.'s sales last year were $320,000, and its net income after taxes was $23,000.What was its profit margin on sales?


A) 6.49%
B) 6.83%
C) 7.19%
D) 7.55%
E) 7.92%

F) C) and D)
G) All of the above

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pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm hasno amortization charges, it does not lease any ass ets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.  Balance Shet (Millions of $ )  \text { Balance Shet (Millions of } \$ \text { ) }  Assets 2016‾ Cash and securities $1,554.00 Accounts receivable 9,660.00 inventories 13,440.00 Total current assets $24,654.00 Net plant and equipment 17,346.00 Total assets $42,000.00 Liabilities and Equity  Accounts payable $7,980.00 Notes payable 5,880.00 Accruals 4,620.00 Total current liabilities $18,480.00 Cong-term bonds 10,920.00 Cotal liabilities $29,400.00 Common stock 3,360.00 Retained earnings 9,240.00 Total common equity $12,600.00 Total liabilities and equity $42,000.00 Income Statement (Millions of $)  2016 Net sales $58,800.00 Operating costs except depr’n $55,274.00 Depreciation $1,029.00 Earnings bef int and taxes (EBIT)  $2,497.00 Less interest 1,050.00 Earnings before taxes (EBT)  $1,447.00 Taxes $314.00 Net income $1,133.00 Dther data:  Shares outstanding (millions)  175.00 Common dividends 509.83 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 21.7% Year-end stock price $77.69\begin{array}{lr}\text { Assets } & \underline{2016} \\\text { Cash and securities } & \$ 1,554.00 \\\text { Accounts receivable } & 9,660.00 \\\text { inventories } & 13,440.00 \\\text { Total current assets } & \$ 24,654.00 \\\text { Net plant and equipment } & 17,346.00 \\\text { Total assets } & \$ 42,000.00 \\\text { Liabilities and Equity } \\\text { Accounts payable } & \$ 7,980.00 \\\text { Notes payable } & 5,880.0 0\\\text { Accruals } & 4,620.00\\\text { Total current liabilities } & \$ 18,480.00 \\\text { Cong-term bonds } & 10,920.00 \\\text { Cotal liabilities } & \$ 29,400.0 0\\\text { Common stock } & 3,360.00 \\\text { Retained earnings } & 9,240.00 \\\text { Total common equity } & \$ 12,600.00 \\\text { Total liabilities and equity } & \$ 42,000.00\\\\\text { Income Statement (Millions of \$) } & 2016 \\\text { Net sales } & \$ 58,800.00 \\\text { Operating costs except depr'n } & \$ 55,274.00 \\\text { Depreciation } & \$ 1,029.00\\\text { Earnings bef int and taxes (EBIT) } & \$ 2,497.00 \\\text { Less interest } & 1,050.00 \\\text { Earnings before taxes (EBT) } & \$ 1,447.00 \\\text { Taxes } & \$ 314.00 \\\text { Net income } & \$ 1,133.00\\\text { Dther data: }\\\text { Shares outstanding (millions) } & 175.00 \\\text { Common dividends } & 509.83 \\\text { Int rate on notes payable \& L-T bonds } & 6.25 \% \\\text { Federal plus state income tax rate } & 21.7 \% \\\text { Year-end stock price } & \$ 77.69\end{array} -Refer to the data for Pettijohn Inc.What is the firm's EPS?


A) $5.84
B) $6.15
C) $6.47
D) $6.80
E) $7.14

F) A) and B)
G) B) and D)

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An investor is considering starting a new business.The company would require $475,000 of assets, and it would be financed entirely with common stock.The investor will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an ROE of 13.5%.How much net income must be expected to warrant starting the business?


A) $52,230
B) $54,979
C) $57,873
D) $60,919
E) $64,125

F) C) and D)
G) B) and D)

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pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm hasno amortization charges, it does not lease any ass ets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.  Balance Shet (Millions of $ )  \text { Balance Shet (Millions of } \$ \text { ) }  Assets 2016‾ Cash and securities $1,554.00 Accounts receivable 9,660.00 inventories 13,440.00 Total current assets $24,654.00 Net plant and equipment 17,346.00 Total assets $42,000.00 Liabilities and Equity  Accounts payable $7,980.00 Notes payable 5,880.00 Accruals 4,620.00 Total current liabilities $18,480.00 Cong-term bonds 10,920.00 Cotal liabilities $29,400.00 Common stock 3,360.00 Retained earnings 9,240.00 Total common equity $12,600.00 Total liabilities and equity $42,000.00 Income Statement (Millions of $)  2016 Net sales $58,800.00 Operating costs except depr’n $55,274.00 Depreciation $1,029.00 Earnings bef int and taxes (EBIT)  $2,497.00 Less interest 1,050.00 Earnings before taxes (EBT)  $1,447.00 Taxes $314.00 Net income $1,133.00 Dther data:  Shares outstanding (millions)  175.00 Common dividends 509.83 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 21.7% Year-end stock price $77.69\begin{array}{lr}\text { Assets } & \underline{2016} \\\text { Cash and securities } & \$ 1,554.00 \\\text { Accounts receivable } & 9,660.00 \\\text { inventories } & 13,440.00 \\\text { Total current assets } & \$ 24,654.00 \\\text { Net plant and equipment } & 17,346.00 \\\text { Total assets } & \$ 42,000.00 \\\text { Liabilities and Equity } \\\text { Accounts payable } & \$ 7,980.00 \\\text { Notes payable } & 5,880.0 0\\\text { Accruals } & 4,620.00\\\text { Total current liabilities } & \$ 18,480.00 \\\text { Cong-term bonds } & 10,920.00 \\\text { Cotal liabilities } & \$ 29,400.0 0\\\text { Common stock } & 3,360.00 \\\text { Retained earnings } & 9,240.00 \\\text { Total common equity } & \$ 12,600.00 \\\text { Total liabilities and equity } & \$ 42,000.00\\\\\text { Income Statement (Millions of \$) } & 2016 \\\text { Net sales } & \$ 58,800.00 \\\text { Operating costs except depr'n } & \$ 55,274.00 \\\text { Depreciation } & \$ 1,029.00\\\text { Earnings bef int and taxes (EBIT) } & \$ 2,497.00 \\\text { Less interest } & 1,050.00 \\\text { Earnings before taxes (EBT) } & \$ 1,447.00 \\\text { Taxes } & \$ 314.00 \\\text { Net income } & \$ 1,133.00\\\text { Dther data: }\\\text { Shares outstanding (millions) } & 175.00 \\\text { Common dividends } & 509.83 \\\text { Int rate on notes payable \& L-T bonds } & 6.25 \% \\\text { Federal plus state income tax rate } & 21.7 \% \\\text { Year-end stock price } & \$ 77.69\end{array} -Refer to the data for Pettijohn Inc.What is the firm's ROE?


A) 8.54%
B) 8.99%
C) 9.44%
D) 9.91%
E) 10.41%

F) A) and E)
G) A) and B)

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Which of the following statements is CORRECT?


A) If two firms differ only in their use of debt⎯i.e., they have identical assets, sales, operating costs, and tax rates⎯but one firm has a higher debt ratio, the firm that uses more debt will have a higher profit margin on sales.
B) If one firm has a higher debt ratio than another, we can be certain that the firm with the higher debt ratio will have the lower TIE ratio, as that ratio depends entirely on the amount of debt a firm uses.
C) A firm's use of debt will have no effect on its profit margin on sales.
D) If two firms differ only in their use of debt⎯i.e., they have identical assets, sales, operating costs, interest rates on their debt, and tax rates⎯but one firm has a higher debt ratio, the firm that uses more debt will have a lower profit margin on sales.
E) The debt ratio as it is generally calculated makes an adjustment for the use of assets leased under operating leases, so the debt ratios of firms that lease different percentages of their assets are still comparable.

F) A) and B)
G) A) and E)

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Although a full liquidity analysis requires the use of a cash budget, the current and quick ratios provide fast and easy-to-use measures of a firm's liquidity position.

A) True
B) False

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pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm hasno amortization charges, it does not lease any ass ets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.  Balance Shet (Millions of $ )  \text { Balance Shet (Millions of } \$ \text { ) }  Assets 2016‾ Cash and securities $1,554.00 Accounts receivable 9,660.00 inventories 13,440.00 Total current assets $24,654.00 Net plant and equipment 17,346.00 Total assets $42,000.00 Liabilities and Equity  Accounts payable $7,980.00 Notes payable 5,880.00 Accruals 4,620.00 Total current liabilities $18,480.00 Cong-term bonds 10,920.00 Cotal liabilities $29,400.00 Common stock 3,360.00 Retained earnings 9,240.00 Total common equity $12,600.00 Total liabilities and equity $42,000.00 Income Statement (Millions of $)  2016 Net sales $58,800.00 Operating costs except depr’n $55,274.00 Depreciation $1,029.00 Earnings bef int and taxes (EBIT)  $2,497.00 Less interest 1,050.00 Earnings before taxes (EBT)  $1,447.00 Taxes $314.00 Net income $1,133.00 Dther data:  Shares outstanding (millions)  175.00 Common dividends 509.83 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 21.7% Year-end stock price $77.69\begin{array}{lr}\text { Assets } & \underline{2016} \\\text { Cash and securities } & \$ 1,554.00 \\\text { Accounts receivable } & 9,660.00 \\\text { inventories } & 13,440.00 \\\text { Total current assets } & \$ 24,654.00 \\\text { Net plant and equipment } & 17,346.00 \\\text { Total assets } & \$ 42,000.00 \\\text { Liabilities and Equity } \\\text { Accounts payable } & \$ 7,980.00 \\\text { Notes payable } & 5,880.0 0\\\text { Accruals } & 4,620.00\\\text { Total current liabilities } & \$ 18,480.00 \\\text { Cong-term bonds } & 10,920.00 \\\text { Cotal liabilities } & \$ 29,400.0 0\\\text { Common stock } & 3,360.00 \\\text { Retained earnings } & 9,240.00 \\\text { Total common equity } & \$ 12,600.00 \\\text { Total liabilities and equity } & \$ 42,000.00\\\\\text { Income Statement (Millions of \$) } & 2016 \\\text { Net sales } & \$ 58,800.00 \\\text { Operating costs except depr'n } & \$ 55,274.00 \\\text { Depreciation } & \$ 1,029.00\\\text { Earnings bef int and taxes (EBIT) } & \$ 2,497.00 \\\text { Less interest } & 1,050.00 \\\text { Earnings before taxes (EBT) } & \$ 1,447.00 \\\text { Taxes } & \$ 314.00 \\\text { Net income } & \$ 1,133.00\\\text { Dther data: }\\\text { Shares outstanding (millions) } & 175.00 \\\text { Common dividends } & 509.83 \\\text { Int rate on notes payable \& L-T bonds } & 6.25 \% \\\text { Federal plus state income tax rate } & 21.7 \% \\\text { Year-end stock price } & \$ 77.69\end{array} -Refer to the data for Pettijohn Inc.What is the firm's book value per share?


A) $61.73
B) $64.98
C) $68.40
D) $72.00
E) $75.60

F) C) and D)
G) None of the above

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pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm hasno amortization charges, it does not lease any ass ets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.  Balance Shet (Millions of $ )  \text { Balance Shet (Millions of } \$ \text { ) }  Assets 2016‾ Cash and securities $1,554.00 Accounts receivable 9,660.00 inventories 13,440.00 Total current assets $24,654.00 Net plant and equipment 17,346.00 Total assets $42,000.00 Liabilities and Equity  Accounts payable $7,980.00 Notes payable 5,880.00 Accruals 4,620.00 Total current liabilities $18,480.00 Cong-term bonds 10,920.00 Cotal liabilities $29,400.00 Common stock 3,360.00 Retained earnings 9,240.00 Total common equity $12,600.00 Total liabilities and equity $42,000.00 Income Statement (Millions of $)  2016 Net sales $58,800.00 Operating costs except depr’n $55,274.00 Depreciation $1,029.00 Earnings bef int and taxes (EBIT)  $2,497.00 Less interest 1,050.00 Earnings before taxes (EBT)  $1,447.00 Taxes $314.00 Net income $1,133.00 Dther data:  Shares outstanding (millions)  175.00 Common dividends 509.83 Int rate on notes payable & L-T bonds 6.25% Federal plus state income tax rate 21.7% Year-end stock price $77.69\begin{array}{lr}\text { Assets } & \underline{2016} \\\text { Cash and securities } & \$ 1,554.00 \\\text { Accounts receivable } & 9,660.00 \\\text { inventories } & 13,440.00 \\\text { Total current assets } & \$ 24,654.00 \\\text { Net plant and equipment } & 17,346.00 \\\text { Total assets } & \$ 42,000.00 \\\text { Liabilities and Equity } \\\text { Accounts payable } & \$ 7,980.00 \\\text { Notes payable } & 5,880.0 0\\\text { Accruals } & 4,620.00\\\text { Total current liabilities } & \$ 18,480.00 \\\text { Cong-term bonds } & 10,920.00 \\\text { Cotal liabilities } & \$ 29,400.0 0\\\text { Common stock } & 3,360.00 \\\text { Retained earnings } & 9,240.00 \\\text { Total common equity } & \$ 12,600.00 \\\text { Total liabilities and equity } & \$ 42,000.00\\\\\text { Income Statement (Millions of \$) } & 2016 \\\text { Net sales } & \$ 58,800.00 \\\text { Operating costs except depr'n } & \$ 55,274.00 \\\text { Depreciation } & \$ 1,029.00\\\text { Earnings bef int and taxes (EBIT) } & \$ 2,497.00 \\\text { Less interest } & 1,050.00 \\\text { Earnings before taxes (EBT) } & \$ 1,447.00 \\\text { Taxes } & \$ 314.00 \\\text { Net income } & \$ 1,133.00\\\text { Dther data: }\\\text { Shares outstanding (millions) } & 175.00 \\\text { Common dividends } & 509.83 \\\text { Int rate on notes payable \& L-T bonds } & 6.25 \% \\\text { Federal plus state income tax rate } & 21.7 \% \\\text { Year-end stock price } & \$ 77.69\end{array} -Refer to the data for Pettijohn Inc.What is the firm's dividends per share?


A) $2.62
B) $2.91
C) $3.20
D) $3.53
E) $3.88

F) A) and D)
G) A) and C)

Correct Answer

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