Examlex
Define the spending multiplier and describe why it is important. Provide an example and formulas to describe how to calculate the multiplier at a stable price level.
Earnings per Share
A financial ratio that measures the amount of net income earned per share of common stock. It is an indicator of a company's profitability.
Dividend Payout Ratio
The proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.
Book Value per Share
A measure of the net asset value of a company allocated to each outstanding share.
Return on Total Assets
A financial ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.
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