Question
Match each ratio that investors (among other users) would care about with the correct interpretation. You will only use an option once, and will not
Match each ratio that investors (among other users) would care about with the correct interpretation. You will only use an option once, and will not use all options.
1. Earnings Per Share. _____
2. Profit Margin. ______
3. Market-book Ratio. _______
4. Price-Earnings Ratio
Pick From these answers below.
A. | Investors' perception of the unrecorded assets of the firm (i.e., that bring the firm value but are not captured on the Balance Sheet) |
B. | Profits generated by each dollar of equity |
C. | The Net Income the company earned that is associated with each common shareholder's interest |
D. | Investors' perception of the company's growth potential |
E. | The profits that the company generated by each dollar of sales |
F. | Sales generated by the company's assets |
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