Question 1 if Ramtastic Corporation issues 4,650,000 shares of common stock at a $6/share par value, and if the market price of that stock at the time of issue is $13.00/share, then the value of Capital in Excess of Par in the equity section of the balance sheet is:

$88,350,000

$32,550,000

$27,900,000

$60,450,000

Question 2 Tate's EBT is $125,000. What is the average tax rate?

Before Tax Income (EBT ) Tax Rate

Question 3
Given the following information for Sandstone, Inc.: net income = $400,000; beginning of year retained earnings = $140,000; common stock dividends paid for the year = $112,000. Compute the end of year retained earnings.

$352,000

$0

$372,000

$288,000

$428,000

Question 4
You are given: Total Asset Turnover = 3.5 and Return on Assets = 7%. Compute Net Profit Margin:

2%

13%

24.5%

3.5%

10.5%


Question 5  Last year Biff Industries had an operating profit of $3,950,000, paid $270,000 in interest expense. The applicable income tax rate for the year was 31%. The company had 270,000 shares of common stock outstanding at the end of last year. What was Biff's EPS last year? The company has no preferred stock.

$13.63

$10.78

$15.63

$14.63

$9.40