A Measure of How Well Earnings Support Dividend Payments Is

question 147

Multiple Choice

A measure of how well earnings support dividend payments is:

• A)earnings per share.
• B)dividend payout ratio.
• C)dividends per share.
• D)dividend yield.

---

Definitions:

Interest Charges

The charge applied by a lender on a borrower for asset utilization, indicated as a percentage of the principal value.

CCC (Cash Conversion Cycle)

A gauge determining how long a company takes to convert investments in stock and other resources into cash flows from sales operations.

Working Capital Management

The management of a company’s short-term assets and liabilities to ensure its continued operation and maximize financial efficiency.

Inventory Management

The supervisory process focusing on ordering, storing, using, and selling a company's inventory.