Dividends are A- The amount of corporate profit paid out for each share of stock
ID: 1118143 • Letter: D
Question
Dividends are
A- The amount of corporate profit paid out for each share of stock.
B- Profits used for investment in new plants and equipment.
C- An increase in the market value of an asset.
D- The only motive for purchasing stock.
2)
The P/E ratio, or price to earnings ratio of a stock, can be computed using which of the following formulas?
A- (Revenue per share) ÷ (Price of stock share).
B- (Price of stock share) ÷ (Revenue per share).
C- (Earnings per share) ÷ (Price of stock share).
D- (Price of stock share) ÷ (Earnings per share).
Explanation / Answer
1.Ans: A- The amount of corporate profit paid out for each share of stock.
2.Ans: D- (Price of stock share) ÷ (Earnings per share).