All of the Following Are Mentioned in the Textbook as Ratios

question 137

Multiple Choice

All of the following are mentioned in the textbook as ratios used to monitor and measure organisational performance EXCEPT ________.

• A)leverage ratios
• B)activity ratios
• C)liquidity ratios
• D)profitability ratios
• E)conformance ratios

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Definitions:

Investment

The allocation of resources, usually money, in expectation of achieving a future return or profit.

Annual Dividend

The total amount of dividends a company pays out to its shareholders each year, usually quoted as an amount per share.

Constant Rate

A stable growth or decline rate over a period, often used in the calculation of interest and financial forecasting.

Discount Rate

This is the interest rate used in discounted cash flow (DCF) analysis to present values of future cash flows back to their value today.