Which of the Following Ratios Would Be the Most Helpful

question 11

Multiple Choice

Which of the following ratios would be the most helpful to an investor who is investing in ordinary shares primarily for dividends rather than for appreciation in market price?

• A) dividend yield.
• B) current ratio.
• C) rate of return on ordinary equity.
• D) return on total assets.

---

Definitions:

Brainstorming

The engagement of group members in an open, spontaneous discussion of problems and ideas.

Freewheeling

Characterized by a carefree or unconstrained approach, often implying a lack of rules or structure.

Teams

Groups of people working together towards a common goal, often complementing each other's skills and strengths.

Groupthink

A tendency for highly cohesive teams to lose their evaluative capabilities.