Match Each Ratio That Follows to Its Use (Items A-H)

question 158

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-Earnings per share
(EPS) on common stock

• A)Assess the profitability of the assets
• B)Assess how effectively assets are used
• C)Indicate the ability to pay current liabilities
• D)Indicate how much of the company is financed by debt and equity
• E)Indicate instant debt-paying ability
• F)Assess the profitability of the investment by common stockholders
• G)Indicate future earnings prospects
• H)Indicate the extent to which earnings are being distributed to common stockholders

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Definitions:

Covenant of Title

A guarantee in a deed to real property that the grantor has the legal right to transfer ownership.

Quiet Enjoyment

A tenant's right to occupy and use property without interference from the landlord or others with superior title.

Warranty Deed

A deed that guarantees clear title to the property and the right to sell it, providing protection to the buyer against any future claims to the property.

Dodd-Frank Act

A comprehensive and complex piece of financial reform legislation passed in 2010 in the United States, aimed at preventing future financial crises by improving accountability and transparency in the financial system.