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Fluno Corporation Has 1 Million Shares Outstanding at the End \quad

Question 40

Multiple Choice

Fluno Corporation has 1 million shares outstanding at the end of fiscal 2005. Its stock is trading at $15 per share. It issued $0.6 million in dividends, and had net income of $1 million in fiscal 2005. At the end of 2005, its total assets, liabilities, and retained earnings were $25 million, $15 million, and $7.5 million, respectively. Fluno's price-to-book ratio and dividend yield ratios for 2005 are:
\quad \quad  Price-to-book Dividend vield \underline{\text { Price-to-book}} \quad\underline{\text { Dividend vield }}
A. \quad \quad \quad 2 \quad \quad \quad \quad \quad \quad 60 %
B. \quad \quad \quad 1.5 \quad \quad \quad \quad \quad \quad 60%
C. \quad \quad \quad 1.5 \quad \quad \quad \quad \quad \quad 4%
D. \quad \quad \quad 2 \quad \quad \quad \quad \quad \quad 4%


A) Option A
B) Option B
C) Option C
D) Option D

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