The Term Used to Evaluate the Profitability of a Firm

question 290

Multiple Choice

The term used to evaluate the profitability of a firm on a common-stock per-share basis is

• A)price/earnings ratio.
• B)earnings per share
• C)dividend payout ratio.
• D)cash dividends per share.

Identify the components and structure of the Z-value calculation.

Interpret the outcomes of a one-sample Z-test in terms of hypothesis testing.

Recognize the importance and role of the level of significance in hypothesis testing.

Differentiate between null and alternative hypotheses in the context of a one-sample Z-test.