For Each of the Following Sentences, Select the Phrase or Group

question 19

Multiple Choice

For each of the following sentences, select the phrase or group of words that best completes the statement.
-Measure of a company's success in earning a return for the common stockholders.

• A)Debt-to-equity ratio
• B)Dividend payout ratio
• C)Dividend yield ratio
• D)Earnings per share
• E)Leverage
• F)Return on assets ratio
• G)Return on common equity ratio
• H)Stock repurchase payout

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Definitions:

Maximum Profit

The highest possible financial gain a business can achieve in a given period, optimized through revenue and cost management.

Market Price

The current price at which an asset or service can be bought or sold in a given market, determined by supply and demand dynamics.

Firm

A business or company that sells goods or services in an attempt to earn a profit.

Competitive Price-Taker Firm

A business that accepts market prices as given because it has no power to influence them.