94%(16)15 out of 16 people found this document helpful
This preview shows page 1 - 3 out of 3 pages.
On Financial Ratios -Gross profit: Sales – COGS (nothing else is taken into account) -Earnings per share (net income/shares outstanding). -Price-earnings ratio: Share price/EPS. -Dividend yield: (dividend/share price). -The Economic Rate of Return on stock is a way to calculate total return on a stock investment (i.e. the sum of dividends and built-in capital gains). Therefore you add dividends and built-in capital gains (or subtract losses) and you divide by the