Question

1.Which of the following ratios measures the earnings of a company on each dollar of assets​ invested?

A.Current ratio

B.Return on assets

C.Return on equity

D.Return on sales

2.Which of the following measures the ability for a company to meet longminus−term obligations or take on more​ debt?

A.Debt turnover

B.Return on equity

C.Current ratio

D.Debt ratio

3.The ratio of dividends to the average number of common shares outstanding​ is:

A.dividends per share.

B.earnings per share.

C.dividend yield.

D.dividend payout ratio.

Answer 1

Answer 1

Option b. Return on assets

The return on assets shows the percentage of how profitable a company's assets are in generating revenue. ROA can be computed as below: This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control.

Answer 2

Option d debt ratio

Debt Ratio is a financial ratio that indicates the percentage of a company's assets that are provided via debt.

Answer 3

Option d - dividend payout ratio

dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders relative to the net income of the company. It is the percentage of earnings paid to shareholders in dividends.

Pls like if logic explained