Which Ratio Identifies the Amount Shareholders Are Willing to Pay

question 8

Multiple Choice

Which ratio identifies the amount shareholders are willing to pay for each $1 per share of earnings a firm generates?

• A)Equity multiplier
• B)Return on equity
• C)Price-earnings ratio
• D)DuPont identity
• E)Return on assets

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Definitions:

Demographic Segmentation

The grouping of consumers according to easily measured, objective characteristics such as age, gender, income, and education.

Consumer Market

The market segment consisting of individual customers who purchase goods and services for personal use.

Segments

In marketing, it refers to subsets of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities like interests, needs, or location.

Demographic Segmentation

The process of dividing a market into smaller groups based on demographic factors such as age, income, gender, or education.