Financial Statements for Oram Company Appear Below: Dividends

question 175

Multiple Choice

Financial statements for Oram Company appear below: Dividends during Year 2 totaled $161 thousand, of which $10 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $610.
-Oram Company's times interest earned for Year 2 was closest to:

• A) 10.8
• B) 11.8
• C) 19.5
• D) 7.5

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Definitions:

Socially Efficient

A condition where resources are allocated in a way that maximizes the overall benefit to society, taking into account all externalities.

Marginal Revenue

The additional income obtained from selling one more unit of a good or service, critical in determining the optimal level of production for a firm.

Profits Maximize

The process or strategy by which a firm seeks to achieve the highest possible return or benefit from its operations and resources.

Monopolist

A single seller in a market who has significant control over the prices and supply of a product or service.