Answer the following statements true (T) or false (F)
1. The price/earnings ratio measures the value that the stock market places on $1 of a company's earnings.
2. The rate of return on common stockholders' equity shows the relationship between net income
available to common stockholders and their average common equity invested in the company.
1. TRUE
2. TRUE
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The linear equation for revenue is price multiplied by fixed cost
Indicate whether the statement is true or false
Leonard Company paid freight costs to have goods shipped to one of its customers. What effect will the payment of these freight costs have on the company's financial statements? Asset=Liab.+Stk.EquityRev.-Exp.=Net Inc.Stmt ofCash FlowsA.+-=NA+NANA-NA=NA-OAB.-=++NANA-NA=NA-OAC.-=NA+-NA-+=--OAD.-=NA+-NA-NA=NA-IA
A. Option A B. Option B C. Option C D. Option D
The future value of an ordinary annuity of $2,000 each year for 10 years, deposited at 12 percent, is ________
A) $35,098 B) $20,000 C) $39,310 D) $11,300
A partner's liability for partnership debts is limited to his capital contribution
Indicate whether the statement is true or false