Which Financial Ratio Indicates the Percentage of Profit That Is

question 42

Multiple Choice

Which financial ratio indicates the percentage of profit that is paid out as dividends?

• A) return on equity
• B) dividend payout ratio
• C) dividend yield on common stock
• D) price/earnings ratio
• E) debt to asset ratio

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Definitions:

Deferred Tax Liability

This is a tax obligation due in the future for income that has already been recognized in the financial statements.

Carrying Values

The book value of assets and liabilities as reported on the balance sheet, accounting for depreciation, amortization, and impairment.

Fair Values

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Tax Bases

The amount upon which taxes are assessed, including income, property values, or sales, providing a foundation for tax calculations.