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Which of the Following Transactions Is Represented by the Diagram

question 70

Multiple Choice

Which of the following transactions is represented by the diagram below? Which of the following transactions is represented by the diagram below?   A)  A junkyard holds weekly sales where it sells its entire inventory. B)  A shoe store sells products to consumers. C)  A stay-at-home mom creates furniture for doll houses. When one piece is finished, she sells it on Amazon.com. D)  Netflix sells movies to consumers through its online downloading service.


Definitions:

Price/earnings Ratio

A valuation metric for a stock, calculated as the market price per share divided by the earnings per share.

Share Repurchase

A corporate action in which a company buys back its own shares from the marketplace, which can increase the value of remaining shares.

Retention Ratio

The proportion of net income that is retained in the business rather than paid out to shareholders, indicating the company's reinvestment rate.

Dividend Yield

A stock’s cash dividend divided by its current price.

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