Which of the Following Is an Absolute Dollar Measure Rather

question 79

Multiple Choice

Which of the following is an absolute dollar measure rather than a percentage?

• A) percentage of sales
• B) return on investment
• C) division return on investment
• D) economic value added (EVA)

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Definitions:

Preferred Dividends

Dividends that are paid to preferred shareholders before any are paid to common shareholders, often at a fixed rate.

Payout Ratio

A financial metric that measures the proportion of earnings a company pays to its shareholders in the form of dividends, typically expressed as a percentage.

Retained Earnings

Retained earnings refer to the cumulative amount of net income a company retains, rather than distributing it to shareholders as dividends.

Net Income

The remainder of a company's total revenue after deducting taxes, expenses, and any other costs.