Indicate whether each of the following statements about financial statement analysis is true or false.________ a) Both dividends and earnings performance are indicators of the value of a company's stock.________ b) The most widely quoted measure of a company's earnings performance is return on equity.________ c) Earnings per share is calculated for a company's common stock.________ d) Investors need to understand that the value of a company's earnings per share is affected by its choices of accounting principles and assumptions.________ e) The book value per share measures the market value of a corporation's stock.
What will be an ideal response?
a) T b) F c) T d) T e) F
a) Both dividends and earnings performance are indicators of the value of a company's stock.
b) The most widely quoted measure of a company's earnings performance is earnings per share.
c) Earnings per share is calculated for a company's common stock.
d) Investors need to understand that the value of a company's earnings per share is affected by its choices of accounting principles and assumptions.
e) The market value per share measures the market value of a corporation's stock.
You might also like to view...
The openness ratio is measured by a country's
a. exports as a percent of GDP. b. imports as a percent of GDP. c. exports minus imports as a percent of GDP. d. exports plus imports as a percent of GDP.
The Fair Labor Standards Act provides that all employees covered by the act must be paid double the regular rate for all hours worked over 48 hours in a week
Indicate whether the statement is true or false
Convergent validity is established when the measured items are conceptually consistent with a
construct definition. Indicate whether the statement is true or false
Zack Peyton borrowed $398,000 from Fifth First Bank to purchase a new home. Zack gave First Bank a mortgage on his home. The mortgage was recorded on January 3, 2014. Zack had made a down payment of $42,000. When Zack moved in, he purchased an in-ground swimming pool from Paddock Pools for $35,000. Zack paid Paddock $4,000 and Paddock financed the remaining amount for him, recording a mortgage
for $29,000 on February 26, 2014. Zack needed window coverings, landscape, and some new furniture. Wells Fargo gave Zack a $150,000 home equity line of credit, secured by a mortgage on Zack's home for $150,000. Wells Fargo recorded the home equity credit line mortgage on February 1, 2014. Zack, because of a bonus at work, did not draw on the line of credit until June 10, 2015, using $25,000. The economy went south somewhere around September 2015. The value of Zack's home dropped by almost 50%. Zack lost his job. He could no longer make his payments. Fifth First Bank served Zack with a notice of foreclosure on November 1, 2015. ?Suppose that Tommy Tonita purchased the Zack home at a foreclosure sale. Tommy paid the $220,000. What type of document would Tommy receive at the foreclosure sale? A)?A warranty deed B)?A special warranty deed C)?A sheriff's deed D)?A bargain and sale deed