1. The percentage measure of how well an investment is doing and is often used as the basis for comparison with other investments is the _____. A. dividend yield B. price-earning ratio C. return on equity D. return on investment

1. The percentage measure of how well an investment is doing and is often used as the basis for comparison with other investments is the _____. A. dividend yield B. price-earning ratio C. return on equity D. return on investment

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 12DQ

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Question

1. The percentage measure of how well an investment is doing and is often used as the basis for comparison with other investments is the _____.

A. dividend yield

B. price-earning ratio

C. return on equity

D. return on investment

2. Ricardo invested a lump sum of $11,500 in a mutual fund with an offer price of $12.33. How many shares did he purchase? (Round to the nearest thousandth.)

A. 839.206

B. 932.685

C. 1,073.401

D. 1,352.035

Formula Formula ROI (%) = Net Income Principal Amount × 100

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