Question

Match each of the following ratios to its use (ah). Items may be used more than once.

a. Assesses the profitability of the assets

b. Assesses how effectively assets are used

c. Indicates the ability to pay current liabilities

d. Indicates how much of the company is financed by debt and equity

e. Indicates instant debt-paying ability

f. Assesses the profitability of the investment by common stockholders

g. Indicates future earnings prospects

h. Indicates the extent to which earnings are being distributed to common stockholders

Earnings per share (EPS) on common stock

Answer

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