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The Ability Triangle Includes _____

question 14

Multiple Choice

The ability triangle includes _____.


Definitions:

Earnings Per Share

A measurement of a company's profitability, calculated by dividing net income by the number of outstanding shares of its common stock.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the current market price of a share by its earnings per share (EPS).

Dividend Payout Ratio

The ratio of the total dividends declared by a company to its net income, showing what portion of earnings is paid out as dividends.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

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