Profit Maximization is also called as: a. Earning per share maximization b. Dividend per share maximization c. Wealth per share maximization d. Cashing per share maximization

Q: Which of the following is ratios represents dividends per common share in relation to market price…

A: The ratio represents dividend per common share in relation to Market price per common share is as…

Q: For corporations, maximizing the value of owner's equity can also be stated as Multiple Choice…

A: Owner's equity:The owner's equity could be stated as "a part of the overall value of the firm's…

Q: a. Sales Maximization b. Asset Maximization c. Profit Maximization d. Wealth Maximization

A: Time value of money is a technique used to find the worth of money today, but that money is to be…

Q: How does current ratio and quick ratio relate to a firm's financial profitability?

A: Current ratio and quick ratio are indirectly related to a firm's financial profitability.

Q: Earnings per share computation have received increased prominence on the income statement. How would…

A: Earnings per share is the amount of profit that is allocated to each shareholder. Earnings per share…

Q: Find the below following: Gross Profit Ratio Operating Ratio Net Profit Ratio Operating (Net) Profit…

A: As per our protocol, we are supposed to answer first three sub-parts only but you have asked multi…

Q: What is dividend payout ratio of AGA?

A: Dividend payout ratio is the percentage of dividend paid out of Net Income. It is computed as =…

Q: Dividends paid per common share divided by the market price per common share produces the: Select…

A: Dividends are a part of net income that are paid to the shareholder of the company in the form of…

Q: How do I calculate the price / earnings ratio, earnings per common share, and dividend payout?

A: Price/ Earnings ratio: Price Earnings ratio is the ratio of firm’s present share price to its…

Q: Define the term Earnings per common share?

A: Earnings per common share: A company generate the portion of profit or loss every year. Earnings per…

Q: ____________ is a short-term goal. It can be achieved at the expense of the firm and its…

A: Short term goals of the business means those objectives or goals which needs to be completed or…

Q: market capitalization is higher, lower, equal to total shareholders' equity

A: Market capitalization is computed by multiplying the current market price of the shares with the…

Q: Analyze the company’s profitability and its ability to generate sufficient operating profit by using…

A: Ratio Analysis The purpose of preparing the ratio analysis to know the strength and weakness of the…

Q: Explain the following Investment ratios and indicate how they are computed: Earnings per share (EPS)…

A: Earnings per share (EPS) is ascertained as the benefit of an organization divided by outstanding…

Q: Total Present value minus the total cost incurred for the business operation is a part of a. Profit…

A: Wealth maximization is a concept stating the shareholder's wealth or a person's wealth. The wealth…

Q: A measure of profitability analysis is a. times interest earned. b. cash flow per share.…

A: Evaluation of profitability: In general, financial ratios are used to evaluate capabilities,…

Q: The value of anything can be determined if you know the amount and timing of related:   Net…

A: Cashflow helps to calculate Income statement. From income statement,  we can calculate Earnings…

Q: what do you think is the significance of Earnings Per Share (EPS) especially in measuring the…

A: Earnings per share or EPS is an important financial measure, which indicates the profitability of a…

Q: Compare the effect of distribution of dividends and retained earnings  on the value of the firm.

A: A dividend is a profit distribution made by a firm to its shareholders. When a company makes a…

Q: describe how earnings per share is calculated and calculate and interpret a company’s earnings per…

A: Earnings per share (EPS) is a company's net profit divided by the number of common shares it has…

Q: Fundamental Analysis a. Price-to-Earnings Ratio b. Solvency Ratio c. Book Value Per Share d. Cash…

A: Technical analysis uses past movements of price and trends to predict the future movement. Hence,…

Q: The type of dividend that does not affect total assets and total shareholders' equity is a. share…

A: The dividend is the portion of net income which is distributed to shareholders. Dividend payment is…

Q: What are the importance of the following financial ratios?  • Price to earnings ratio. • Earnings…

A: 1) Price earning ratio: Market price of share/ earning per share 2) Earning per share Earning…

Q: a. How does the return on total assets differ from the return on stockholders’ equity?b. Which ratio…

A: a. When return on total assets is considered, interest expense is added to the net income and…

Q: Dividends representing a return of invested capital is known as a. stock dividend b. scrip dividend…

A: Dividends are paid to the investors by the company out of profit of the company. They are paid to…

Q: A distribution of earned profits in the form of cash, property or stock Appropriation Dividend…

A: The shareholders have the right to get share of the profits earned by the business.

Q: period

A: value of equity is the sum of present value of future dividend paid. Present value = Expected…

Q: Which one of the following is the ultimate objective of modern financial management for a…

A: objective of financial manager is to maximise shareholders value.

Q: The wealth maximization objective of a firm is superior to its profit maximization objectives.Do you…

A: The primary objective of every firm is to maximize its profit. Wealth maximization is the broader…

Q: how is an increase of share prices recorded on a company's income statement, balance sheet, and cash…

A: Answer: An increase in share prices will not have any monetary impact. It simply means that the no.…

Q: Why is earnings per share called “the bottom line”? What is EBIT, or operatingincome?

A: Earnings per share is the company’s net revenue/income that can be distributed among its…

Q: the ratio of dividends per share to earnings per share is known as the dividends yield

A: The dividend is the portion of earnings that is distributed to the stockholders of the company. When…

Q: A common measure of liquidity is a.the asset turnover ratio b.the accounts receivable turnover…

A: Assets turnover ratio means how many times sale is , as compared to average assets. Account…

Q: The proportion of profits distributed as dividends is called the and the retained proportion of…

A: Financial ratios refer to an accounting or business metric used by companies for comparing two…

Q: Compute dividend payout ratio

A: Dividend payout ratio = Dividend per share / Earning per Share * 100

Q: True

A: Common stock refers to the shares in a company that is owned by the general public and has several…

Q: Profitability ratios: 1. 2. 3. 4. 5. 6. Return on equity Return on assets Gross profit percentage…

A: Ratio analysis is a technique of analysis and interpretation of financial statements. It is the…

Q: How is the realised percentage return from investing in a share calculated? A. The cash flows…

A: Realized percentage return is the return which the investors gets over a period after considering al…

Q: Which one of the following is the ultimate objective of modern financial management for a…

A: Modern financial management is referred as one of the function of an organization which is concerned…

Q: Is the market price per share Net income Less Preferred Dividends

A: Yes. Market Price per share is already given in the question and NET INCOME- Preferred Dividends is…

Q: What do the three theories indicate regardingthe actions management should take withrespect to…

A: Dividend policy is the policy the company uses to structure its dividend payout to its shareholders.

Q: Find the below following: -Operating (Net) Profit Ratio -Stock Turnover Ratio

A: Operating Profit Ratio = (Operating Profit / Net Sales) * 100 Operating Profit = Sales – (Operating…

Q: The shareholders of the company gets share in the profit. This distribution of profit is called as…

A: Shareholders invests their money into the business for which they receive a share of company's…

Q: Profitability ratios include the profit margin on sales, the return on total assets, and the return…

A: Profitability ratios are a class of financial metrics that are used to assess a business's ability…

Q: You maximize shareholder's wealth by seeking to maximized Earnings Per Share which is based on…

A: Shares holders are TRUE owners of company and maximization of wealth of shareholders is objectives…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.