Which of the Following Measures How Much of Earnings Per

question 18

Multiple Choice

Which of the following measures how much of earnings per share is returned to common stockholders in the form of dividends?

• A)Earnings per share
• B)Dividend payout ratio
• C)Price/earnings ratio
• D)Return on assets

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Definitions:

Fair Value

The estimated price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.