Match the Ratios with Their Formulas by Entering the Appropriate

Multiple Choice

Match the ratios with their formulas by entering the appropriate letter in the space provided.
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(Net income - preferred dividends) /Average common shares outstanding

A) Current ratio
B) Price-earnings ratio
C) Profit margin
D) Asset turnover
E) Earnings per share
F) Times interest earned
G) Inventory turnover
H) Average collection period
I) Days in inventory
J) Payout ratio