Which of the Following Statistics Is Generally Computed for Both

question 89

Multiple Choice

Which of the following statistics is generally computed for both common and preferred stock?

• A)Earnings per share
• B)Price-earnings ratio (P/E ratio)
• C)Annual dividend per share
• D)Retained earnings per share

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Definitions:

Assets

Economic resources owned or controlled by a company; they have measurable value and are expected to benefit the company by producing cash inflows or reducing cash outflows in the future.

Stock Price Appreciation

The rise in the value of a company's shares over time, reflecting the market's increased valuation of the company.

Common Stock

A form of corporate equity ownership, a type of security representing ownership of a fraction of a company, providing voting rights and a share in the company’s profits.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.