[nkorb1]

Balance sheets at the end of each of the first two years of operations indicate the following:
2006 2005
Total current assets $600,000 $560,000
Total investments $ 60,000 $ 40,000
Total property, plant, and equipment 900,000 700,000
Total current liabilities 150,000 80,000
Total long-term liabilities 350,000 250,000
Preferred 9% stock, $10 par 100,000 100,000
Common stock, $10 par 600,000 600,000
Paid-in capital in excess of par-
Common stock 60,000 60,000
Retained earnings 325,000 210,000

If net income is $115,000 and interest expense is $30,000 for 2006, what is the rate earned on total assets for 2006 (round percent to one decimal point).

What is the rate earned on stockholders’ equity for 2006?

If net income is $115,000 and interest expense is $30,000 for 2006, and the market price is $30, What is the price-earnings ratio on common stock for 2006?

[Zolton]

The balance sheets at the end of each of the first two years of operations indicate the following:

2009 2008
Total current assets $600,000 $560,000
Total investments 60,000 40,000
Total property, plant, and equipment 900,000 700,000
Total current liabilities 150,000 80,000
Total long-term liabilities. 350,000 250,000
Preferred 9% stock, $100 par 100,000 100,000
Common stock, $10 par 600,000 600,000
Paid-in capital in excess of par—common stock 60,000 60,000
Retained earnings 325,000 210,000

If net income is $130,000 and interest expense is $40,000 for 2009, and the market price is $30, what is the price-earnings ratio on common stock (rounded to one decimal place)?