Which Financial Indicator Is Calculated by the Ratio of Annual

question 24

Multiple Choice

Which financial indicator is calculated by the ratio of annual dividends per share to current market price per share?

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

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Definitions:

Sandwich Shop

A food establishment that specializes in selling sandwiches and often other types of lunch food and beverages.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good.

Chain Saws

Mechanical tools equipped with a rotating chain with teeth that are used for cutting through wood or other materials.

Perfectly Inelastic

A situation in which demand or supply does not respond at all to changes in price levels, illustrated by a vertical demand or supply curve.