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WorksheetsFinancial Analysis & Reporting - Final Quiz 2
Total questions: 11
Worksheet time: 7mins
This presentation is based on the outstanding common shares and those securities that are in substance equivalent to common shares and have a dilutive effect.
(a)
This ratio measures a firm’s ability to repay both its short- and long-term debt.
(a)
This ratio is similar to the times' interest earned ratio, except that it is based on cash flows from operating activities rather than net income.
(a)
They are interested in using EPS as a measure of the operating success of a company.
(a)
A higher EPS will likely result in higher dividends per share and a lower market price per share.
True
False
The dividend yield ratio can be used to evaluate the company’s dividend policy.
True
False
A high cash reinvestment ratio indicates that more cash is being used in the business.
True
False
A valuable tool in providing information on how your company generated and used cash.
(a)
This analysis relate the firm’s stock price to its earnings (book value, sales, cash flow) per share.
(a)
Earnings per share may be reported for the result from discontinued operations or extraordinary items if they are reported on the income statement.
True
False
Watson Corporation computed the following items from its financial records for the year: Price-earnings ratio = 12; Dividend payout ratio= 0.6; Earnings per share = $1; Asset turnover ratio = 0.9. The dividends yield on Watson's common stock is
