Briefly State the Information Provided by the Following Ratios and Briefly

question 97

Essay

Briefly state the information provided by the following ratios and briefly discuss how they are used in financial analysis:
a.price/earnings ratio
b.dividend yield

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Definitions:

Cash Dividend

A distribution of profits by a company to its shareholders, typically given as cash.

Direct Method

An approach in cost accounting where specific costs are directly traced to cost objects without any allocation, ensuring clear cost attribution.

Operating Activities

Activities related to the day-to-day functioning of a business, including selling, administering, and producing goods and services.

Long-term Investments

Investments held for an extended period, typically more than a year, such as bonds, stocks, or real estate, aiming for long-term benefits.