FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The return on equity ratio equals net income divided by common stock.
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- Whats is the sum of the expected dividend and the capital gains yield calledarrow_forwardThe debt ratio is used primarily as a measure of: Short-term liquidity. Profitability. Creditors' long-term risk. Return on Investment.arrow_forwardwhat are liquidity ratios, leverage ratios, profitability ratios, and market measure ratios?arrow_forward
- how do I compute or calculate valuation and relative value measure to assses stock correctly? calculation of stock pricearrow_forwardNet worth is equal to shareholders' equity: Multiple Choice plus dividends. minus preferred stock. plus preferred stock. minus liabilities.arrow_forwardThe two main approaches of equity analysis are: a. The discounted cash flow models and the absolute valuation models. b. The discounted cash flow models and the relative valuation models. c. The rate of return and risk. d. The Price-to-Earnings ratio and the Price-to-Book-Value ratio.arrow_forward
- The appropriate benchmark for the return on equity is: A)the weighted average cost of capital. B)the cost of equity. C)the interest free rate. D)none of the above.arrow_forward19. Gross profit margin is a better measure of profitability than return on equity (ROE). Select one: True or Falsearrow_forwardIn computing Earnings per share when there are preference shares, the total net income after tax is reduced by the dividend in arrears of cumulative preference shares. a. TRUE b. FALSEarrow_forward
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