Match Each Ratio That Follows to Its Use (Items A-H)

question 54

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-return on common stockholders' equity

• A)assess the profitability of the assets
• B)assess how effectively assets are used
• C)indicate the ability to pay current liabilities
• D)indicate how much of the company is financed by debt and equity
• E)indicate instant debt-paying ability
• F)assess the profitability of the investment by common stockholders
• G)indicate future earnings prospects
• H)indicate the extent to which earnings are being distributed to common stockholders

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Definitions:

Standard Normal Distribution

A probability distribution that has a mean of 0 and a standard deviation of 1, representing a standardized version of the normal distribution.

Less Than

A mathematical expression indicating that one quantity is smaller than another.

Z-scores

Standardized scores that indicate the number of standard deviations a data point is from the mean.

Standard Normal Distribution

A probability distribution that has a mean of zero and a standard deviation of one, commonly used in statistics.