Castor Company had income of $10,000, average assets of $100,000 and sales of $40,000. What is Castor's ROI?

Which of the following questions should you ask when applying the FAIR test?

What will be an ideal response?

Koon Corporation has the following stock outstanding: 5% Preferred, $100 Par....$1,200,000 Common Stock, $50 Par....2,000,000 No dividends were paid the previous 2 years. If Koon declares $400,000 of dividends in the current year, how much will preferred stockholders receive if the preferred stock is cumulative?

a. $150,000. b. $180,000. c. $60,000. d. $120,000.