If the US Dollar Appreciates Relative to the British Pound, Then

question 139

Multiple Choice

If the U.S. dollar appreciates relative to the British pound, then

• A) the pound will appreciate relative to the U.S. dollar.
• B) the pound will depreciate relative to the U.S. dollar.
• C) British goods will be more expensive for Americans.
• D) American goods will be less expensive for the British.

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Definitions:

Dividend Yield Ratio

A financial metric that shows how much a company pays out in dividends each year relative to its stock price.

Earnings per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Dividend Payout Ratio

The portion of net income distributed to shareholders in the form of dividends, expressed as a percentage of the company's total net income.

Book Value per Share

A financial measure that indicates the theoretical value per share of a company if it were to liquidate, calculated by dividing total equity by the number of outstanding shares.