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:

Replacement Rate

The total fertility rate necessary to offset deaths in a country and thereby keep the size of its population constant (without relying on immigration). For most countries, a total fertility rate of about 2.1 births per woman per lifetime.

Total Fertility Rate

The average number of children a woman would have over her lifetime, given current birth rates.

Subsistence Levels

The minimum level of income or resources that is considered adequate to maintain life and health.

Efficient Energy Usage

The practice of utilizing energy resources in a way that maximizes output while minimizing waste and costs.