The Ratio That Uses Weighted Average Common Shares Outstanding in the Denominator

question 11

Multiple Choice

The ratio that uses weighted average common shares outstanding in the denominator is the

• A) price-earnings ratio.
• B) return on common stockholders' equity.
• C) earnings per share.
• D) payout ratio.

---

Definitions:

Contingency Planning

The process of developing responses in advance for various possible emergencies, crises, or unexpected conditions.

Manage Risk

The process of identifying, assessing, and controlling threats to an organization's capital and earnings.

Initiating Structure

A leadership behavior that involves the organization and definition of work tasks, establishing clear patterns of organization, communication, and ways of getting tasks done.

Leadership Behavior

The actions, decisions, and mannerisms exhibited by an individual in a leadership position that influence the motivation and performance of others.