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Use the following to answer questions 28-29: Raney Corporation had net income of $200,000 and...

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Use the following to answer questions 28-29: Raney Corporation had net income of $200,000 and paid dividends to common stockholdereor S50.000 in 2016. The weighted average number of shares outstanding in 2016 was 50.000 shares Raney Corporation's common stock is selling for $40 per share on the New York S Exchange. 28. Raney Corporation's price-earnings ratio is A) 2.5 times. B) 10 times. C) 13.3 times. D) 4 times. 29. Raney Corporation's payout ratio for 2016 is A) $4 per share, B) 33.3% C) 25% D) 10% 30. Holt Company reported the following on its income statement: $420,000 120,000 $300.000 Income before income taxes Income tax expense Net income An analysis of the income statement revealed that interest expense was $52,500. Holt Company's time interest earned was A) 9 times. B) 8 times. C) 7 times D) 6 times. Use the following to answer question 31: Risen Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $50,000 from the bank with a 3-month note payable. 31. What effect did the borrowing transaction have on the amount of Risen Company's working capital? A) No effect B) $50,000 increase C) $90,000 increase D) $50,000 decrease Pg. 10

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