Chaney Inc

question 146

Multiple Choice

Chaney Inc.wants to measure the relationship between profitability and the investment made by stockholders.Chaney should use

• A) return on common stockholders' equity.
• B) earnings per share.
• C) return on sales.
• D) the statement of retained earnings.

---

Definitions:

Price Weighted Stock Index

An index in the stock market where the impact of each company’s stock on the index is directly proportional to its share price.

Stock Prices

The cost of purchasing a share of a company's stock, determined by supply and demand in the market.

Divisor

A number that divides into another number, typically referred to in the context of indices calculation in finance.

Money Market Investment

Short-term financial instruments with high liquidity, often used for cash management by investors and companies.