Select from the Following List the Letter of the Ratio $\frac{\text {Market price per common share }}{\text {Earnings per share }}$

question 87

Multiple Choice

Select from the following list the letter of the ratio title for the formula provided in the question.
-Select the letter of the ratio title that corresponds to the following formula.
$\frac{\text {Market price per common share }}{\text {Earnings per share }}$

• A)Current ratio
• B)Acid-test (quick) ratio
• C)Inventory turnover
• D)Accounts receivable turnover
• E)Day's sales in average accounts receivable
• F)Debt ratio
• G)Times-interest-earned ratio
• H)Rate of return on net sales (profit margin)
• I)Rate of return on total assets
• J)Rate of return on common shareholders' equity
• K)Earnings per common share
• L)Price/earnings ratio
• M)Dividend yield
• N)Book value per common share

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Definitions:

Standard Deviation

An indicator employed to assess the degree of scatter or diversity among values in a data set.

Hypothesis Test

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.

Operating Characteristic Curve

The operating characteristic curve is a graphical representation used in quality control to depict the probability of accepting a lot given its level of quality or defect rate.

Type II Error

The error that occurs when a false null hypothesis is not rejected, also known as a "false negative" finding.