The Following Equation, (Net Income - Preferred Stock Dividends)/number of Shares

Multiple Choice

The following equation, (net income - preferred stock dividends) /number of shares of common stock outstanding,allows us to calculate the ________ and this information is necessary to calculate the ________ ratio.

A) dividend yield;dividend
B) earnings per share;P/E
C) market-to-book ratio;book-to-market
D) stock growth;P/E
E) price-to-book ratio;market-to-book