In 1972, Bob purchased a new Datsun 240Z for $3,000. Datsun later changed its name to Nissan, and the 1972 Datsun 240Z became a classic. Bob kept his car in excellent condition and in 2002 could sell the car for 6 times what he originally paid. What was Bob’s annualized rate of return for the 30 years he owned this car? If he keeps the car for another thirty years and earns the same rate, what could he sell the car for in 2032?
Minden Co. has current assets of $180,000 (cash, $20,000; accounts receivable, $70,000; inventory, $90,000), and long-term assets that had cost $400,000, with amortization to date of $180,000. Sales were $500,000, and the operating profit was $50,000. The tax was $20,000 and the interest paid was $10,000. A dividend of $10,000 was paid to the common shareholders. There are 1,000 shares in the issue. Minden Co’s dividend cover ratio is:
a. 3.5 times
b. 2.5 times
c. 3 times
d. 2 times
e. 5 times
A company has net income of $850,000. It has 125,000 weighted-average common shares outstanding and a market value per share of $115.
The company’s price earnings ratio equals:
a. 16.9.
b. 14.7.
c. 92.0.
d. 13.5.
e. 8.0.
