Which Profitability Ratio Requires the Use of Earnings Per Share

question 15

Multiple Choice

Which profitability ratio requires the use of earnings per share and the current market price?

• A)Return on common stockholders' equity
• B)Dividend payout ratio
• C)Dividend yield
• D)Price-earnings ratio

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Definitions:

Organizational Performance

The measurement of an organization's efficiency, effectiveness, and ability to achieve its goals and objectives.

Cognitive Strategy

Techniques or methods employed to enhance learning, memory, or problem-solving abilities.

Self-Talk

The internal dialogue that individuals have with themselves, which can influence their behavior and attitude.

Self-Monitoring

The ability of individuals to regulate their behavior to accommodate social situations.