Which of the Following Ratios Involves the Market Price of a Company's

question 152

Multiple Choice

Which of the following ratios involves the market price of a company's stock?

• A) Return on equity
• B) Dividends yield
• C) Profit margin
• D) Cash flow yield

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Definitions:

Profit

The financial surplus remaining after all expenses have been deducted from total revenue, indicative of the financial success of a business operation.

Commodity

An essential commodity employed in business activities that is substitutable with other commodities of the identical category.

Maximise

The process of increasing a particular variable or outcome to its highest possible value under given constraints.

Input

Resources used in the production process to create goods or provide services.