Response to the following questions:
1. What do the following data taken from a comparative balance sheet indicate about the company's ability to borrow additional funds on a long-term basis in the current year as compared to the preceding year?
Current Year Preceding Year
Fixed assets (net) $175,000 $170,000
Total long-term liabilities 70,000 85,000
2. Why would the dividend yield differ significantly from the rate earned on common stockholders' equity?