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.

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Definitions:

Normal Distribution

It's a probability distribution with symmetry about the mean, proving that data points near the mean have a higher frequency of occurrence compared to those further away.

Mean

The arithmetic average of a set of numbers, obtained by dividing the sum of the numbers by the count of numbers.

P(Z > 3.00)

The probability that a value Z, on a standard normal distribution, is greater than 3.00.

Area

In geometry, the measurement of the extent of a two-dimensional surface or shape, expressed in square units.