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Match Each Formula to the Correct Ratio

Question 97

Matching

Match each formula to the correct ratio

Premises:
Market price per share / earnings per share
Dividends per share / market price per share
Average total liabilities / average total shareholders' equity
Net income / average shareholders’ equity
Responses:
Debt/equity ratio
Financial leverage
Return on sales
Price/earnings ratio
Return on equity
Dividend yield ratio

Correct Answer:

Debt/equity ratio
Financial leverage
Return on sales
Price/earnings ratio
Return on equity
Dividend yield ratio
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