Describe What Is Meant by a Peer Group and How

question 144

Essay

Describe what is meant by a peer group and how it exerts influence over individuals.

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Definitions:

Dividends Per Share

A measure of the dividend payment per share of stock issued, calculated by dividing the total dividends paid by the company by the number of outstanding shares.

Return on Assets

Return on assets (ROA) is a profitability ratio that measures how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.

Average Total Assets

A measure calculated by taking the sum of total assets at the beginning and end of a period and dividing by two, used to evaluate a company's asset utilization efficiency.

Average Total Liabilities

The average amount of money that a company owes to others over a specific time period, used to assess the company's financial health.