Exam 16: Financial Performance Measurement

The following information pertains to Jasmin Corporation. Assume that all balance sheet amounts represent both average and ending figures. Jasmin Corporation had 6,000 shares of common stock issued and outstanding. The market price of Jasmin common stock on December 31, 2009, was $20. Jasmin paid dividends of $0.90 per share during 2009. What is the return on assets for this corporation? Round your answer to 1 decimal place.

If dividends declared per share during 2008 (the base year), 2009, and 2010 are $2.40, $1.80, and $2.16, respectively, the index numbers assigned to 2009 and 2010, respectively, are

A balance sheet that displays only component percentages is called a

A common measure of profitability is the

Dun & Bradstreet publishes

What is horizontal analysis, and why is it useful in performing financial performance measurement?

The following data pertain to Golden State Corporation: Calculate the amount of net sales reported for 2010. Use 365 days per year.

In a common-size financial statement, which of the following is given a designation of 100 percent?

Financial statements for Boston Corporation are presented below. Note: Dividends of $0.60 per share were declared and paid during 2010. The market price of the stock on December 31, 2010 was $18.00 per share. Compute the following for 2010 and place your answers in the spaces provided. Round answers to two decimal places. Show your work.

The sale of plant assets and the payment of dividends will reduce free cash flow.

A change in the company's auditors must be reported to the SEC within a few days of the change.

In horizontal analysis, the base year is the most current year being examined.

Contrast the circumstances where horizontal analysis would be an effective analysis tool with those where common-sized analysis would be more useful.

A company that is leveraged is one that

The following information pertains to Jasmin Corporation. Assume that all balance sheet amounts represent both average and ending figures. Jasmin Corporation had 6,000 shares of common stock issued and outstanding. The market price of Jasmin common stock on December 31, 2009, was $20. Jasmin paid dividends of $1.65 per share during 2009. What is the dividends yield of this corporation? Round your answer to two decimal places.

An annual analysis called "Industry Norms and Key Business Ratios" is compiled and reported by

Using the income statement below, develop a common-size statement by filling in the blanks provided. Show your work. Round to one decimal place.

A company is referred to as a diversified company or a conglomerate if it operates in

Eva Gomez is considering investing money in the common stock of Casa Corporation. She has obtained the annual report of the company and calculated the ratios presented in your text. Eva knows that her calculations are accurate, but does not know if the ratios indicate favorable or unfavorable things about the company. What three standards of comparison are available to Eva? What would each of the standards tell her about her ratios?

Market strength is the ability to increase the wealth of stockholders.