Match the following ratio functions with the ratio (place the number of your chosen answer into the box with the border beside the term you think it goes with : Dividend Yield Debt ratio Current Ratio Price/Earnings Ratio Acid-test ratio Earnings per share 1. The amount of net income earned for each share of the company's common stock 2. The percentage of a stock's market value returned to stockholders as dividends each period 3. The ability to pay current liabilities with current assets. 4. The percentage of assets financed with debt. 5. The ability to pay all current liabilities if they come due immediately. 6. The market price of $1 of earnings.
Match the following ratio functions with the ratio (place the number of your chosen answer into the box with the border beside the term you think it goes with : Dividend Yield Debt ratio Current Ratio Price/Earnings Ratio Acid-test ratio Earnings per share 1. The amount of net income earned for each share of the company's common stock 2. The percentage of a stock's market value returned to stockholders as dividends each period 3. The ability to pay current liabilities with current assets. 4. The percentage of assets financed with debt. 5. The ability to pay all current liabilities if they come due immediately. 6. The market price of $1 of earnings.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Match the following ratio functions with the ratio (place the number of your chosen answer into the box with the border beside the term you think it goes with :
| Dividend Yield | |
| Debt ratio | |
| Price/Earnings Ratio | |
| Acid-test ratio | |
| Earnings per share |
| 1. The amount of net income earned for each share of the company's common stock |
| 2. The percentage of a stock's market value returned to stockholders as dividends each period |
| 3. The ability to pay current liabilities with current assets. |
| 4. The percentage of assets financed with debt. |
| 5. The ability to pay all current liabilities if they come due immediately. |
| 6. The market price of $1 of earnings. |
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