Question: Match each ratio to its use. Items may be used more than once. Price-Earnings (P/E) Ratio To indicate the extent to which earnings are being

Match each ratio to its use. Items may be used more than once. Price-Earnings (P/E) Ratio To indicate the extent to which earnings are being distributed to common stockholders. Rate Earned on Total Assets To assess the profitability of the investment by common Stockholders Ratio of Liabilities to Stockholders' Equity To indicate future earnings prospects Quick Ratio To assess the effectiveness in the use of assets. Current Ratio To indicate the margin of safety to creditors Ratio of Net Sales to Assets To assess the profitability of the assets. Dividends per Share To indicate instant debt-paying ability. Earnings per Share (EPS) on Common Stock To indicate the ability to meet currently maturing obligations
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
