Financial Statements Paper 7

1

Personal financial statements should report assets and liabilities at






2

A business interest that constitutes a large part of an individual’s total assets should be presented in a personal statement of financial condition as






3

Smith owns several works of art. At what amount should these artworks be reported in Smith’s personal financial statements?






4

In personal financial statements, how should estimated income taxes on the excess of the estimated current values of assets over their tax bases be reported in the statement of financial condition?






5

In personal financial statements, how should estimated income taxes on the excess of the estimated current values of assets over their tax bases be reported in the statement of financial condition?






6

Which of the following is not a measure of asset utilization?






7

What financial analysis technique would imply bench marking with other firms?






8

The Dawson Corporation projects the following for the year 2012:
Earnings before interest and taxes $35 million
Interest expense 5 million
Preferred stock dividends 4 million
Common stock dividend payout ratio 30%
Common shares outstanding 2 million
Effective corporate income tax rate 40%
The expected common stock dividend per share for Dawson Corporation for 2012 is






9

The Dawson Corporation projects the following for the year 2012:
Earnings before interest and taxes $35 million
Interest expense 5 million
Preferred stock dividends 4 million
Common stock dividend payout ratio 30%
Common shares outstanding 2 million
Effective corporate income tax rate 40%
If Dawson Corporation’s common stock is expected to trade at a price/earnings ratio of eight, the market price per share (to the nearest dollar) would be






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