The Ratio That Uses Weighted Average Ordinary Shares Outstanding in the Denominator

question 80

Multiple Choice

The ratio that uses weighted average ordinary shares outstanding in the denominator is the

• A) price-earnings ratio.
• B) return on ordinary shareholders' equity.
• C) earnings per share.
• D) payout ratio.

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Definitions:

Assets

Resources owned by a company from which future economic benefits are expected to flow to the company.

Deferred Expenses

Assets created when purchased in the past before being used to generate revenues; need to be adjusted at the end of the period to reflect the amount of expense incurred by using the assets over time.

Assets

Resources owned or controlled by a business, entity, or individual, which are expected to produce economic value or future benefits.