Question Details

Earnings per share is an indication of how much 



1.	Which profitability ratio requires the use of earnings per share and the current market price?
a.	return on common stockholders' equity
b.	dividend payout ratio
c.	dividend yield
d.	price-earnings ratio


	
	2.	Earnings per share is an indication of how much 
a.	the company paid as dividends for each share of stock.
b.	the company earned for each share of outstanding common and preferred stock.
c.	the company earned for each share of outstanding common stock
d.	cash the company has for each share of all outstanding stock.


	

	3.	Chaney Inc. wants to measure the relationship between profitability and the investment made by stockholders. Chaney should use
a.	return on common stockholders' equity.
b.	earnings per share.
c.	return on sales.
d.	the statement of retained earnings.


	

	4.	ABC Company issued additional shares of stock for cash. The effect of the transaction is
a.	the earnings per share increased.
b.	the current ratio was increased.
c.	the debt-to-equity ratio increased.
d.	the return on total assets increased.




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