Which One of the Following Ratios Helps to Indicate a Company's

question 29

Multiple Choice

Which one of the following ratios helps to indicate a company's effectiveness in meeting the stockholder profitability objectives?

• A)profit margin
• B)acid-test
• C)dividend yield
• D)inventory turnover

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Definitions:

Coupon Rate

The interest rate on a bond paid by the issuer, expressed as a percentage of the bond's face value.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over the bond's life, with the principal repaid at maturity.

Interest-Rate Risk

The risk that an investment's value will change due to a change in the absolute level of interest rates.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value, representing the income investors will receive.