Which Financial Ratio Indicates the Dividend Rate of Return to Common

question 89

Multiple Choice

Which financial ratio indicates the dividend rate of return to common shareholders at the current market price?

• A) return on equity
• B) dividend yield on common stock
• C) price/earnings ratio
• D) dividend payout ratio
• E) earnings per share

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Definitions:

General Journal

A primary accounting record where all types of financial transactions are initially recorded using double-entry bookkeeping before posting to specific accounts in the ledger.

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.

Rendering Services

The act of providing professional services or duties to a client or customer.

Purchases Journal

A ledger used in accounting to record all purchases of goods and services on credit.