Comment on how an investor would use each of the following ratios to evaluate business performance
Ratio Comment
Price/Earnings Ratio
Rate of Return on Common Stock
What will be an ideal response
Ratio Comment
Price/Earnings Ratio This is most useful when comparing one company to another. This ratio tells an investor how much they should be willing to pay for $1 of a company's earnings. It is used to evaluate an investor's ability to earn a return on his investment.
Rate of Return on Common Stock This shows the relationship between net income available to common stockholders and their average common equity invested in the company. A rate of return on common stockholders' equity of 15% to 20% is considered good in most industries.
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After studying potential retailing sights the discount chain will open it's stores in the major inner cities such as new york, detroit and los angeles
What will be an ideal response?
Nathan Zabalas owns a regional chain of drug stores. Before expanding nationwide, Nathan is conducting marketing research to determine the best options for opening new stores. He plans to start by collecting secondary data
Which of the following is NOT a source of secondary data that Nathan might use? A) syndicated research B) sales performance reports C) online questionnaires D) Web search engines E) local chambers of commerce
"People have a strong ethical duty to cause no harm, and only a prima facie duty to prevent harm or to do good." Discuss Norman Bowie's view on this statement.
What will be an ideal response?
The following Act insured the right of workers to form unions:
a) Sherman Act b) Clayton Act c) NLRA d) Norris LaGuardia Act e) Railway Labor Act