Which of the Following Most Likely Indicates That a Company

question 44

Multiple Choice

Which of the following most likely indicates that a company is making good use of financial leverage?

• A)The price-earnings ratio exceeds that of competitors.
• B)Earnings per share is higher than the dividends paid per share.
• C)Net income is higher than cash from operations.
• D)Return on common stockholders' equity is higher than the return on total assets.

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