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11. High price to earnings ratio shows company’s_________?

A. Low dividends paid
B. High risk prospect
C. High growth prospect
D. High marginal rate

12. Return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then return on equity would be_________?

A. $22,275
B. 15.71%
C. 1.93%
D. 1.925 times

13. Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________?

A. 0.07%
B. 7.14%
C. 0.05 times
D. 7.15 times

14. A technique uses in comparative analysis of financial statement is_________?

A. Graphical analysis
B. Preference analysis
C. Common size analysis
D. Returning analysis

15. Price per share is $30 and an earnings per share is $3.5 then price for earnings ratio would be___________?

A. 8.57 times
B. 8.57%
C. 0.11 times
D. 11%

16. Set of rules made by corporation founders such as directors election procedure are classified as_________?

A. Stock laws
B. By laws
C. Liability laws
D. Corporate laws

17. Legal entity separation from its legal owners and managers with help of state laws is classified as____________?

A. Controlled corporate business
B. Corporation
C. Limited corporate business
D. Unlimited corporate business

18. Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as______________?

A. Financial instruments
B. Capital assets
C. Primary assets
D. Competitive instruments

19. Set of rules consisting of behavior towards its directors, creditors, shareholders, competitors and community is considered as____________?

A. Agency governance
B. Hiring governance
C. Corporate governance
D. External governance

20. Price for debt is called_________?

A. Debt rate
B. Investment return
C. Discount rate
D. Interest rate