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Match each ratio to its use. Items may be used more than once. Price-Earnings (P/E) Ratio [ Choose ] To indicate future earnings prospects.

Match each ratio to its use. Items may be used more than once.

Price-Earnings (P/E) Ratio 

           

[ Choose ]

             

To indicate future earnings prospects.

             

To indicate the ability to meet currently maturing obligations.

             

To assess the profitability of the investment by common stockholders.

             

To indicate instant debt-paying ability.

             

To indicate the extent to which earnings are being distributed to common stockholders.

             

To indicate the margin of safety to creditors.

         

Working Capital 

           

[ Choose ]

             

To indicate future earnings prospects.

             

To indicate the ability to meet currently maturing obligations.

             

To assess the profitability of the investment by common stockholders.

             

To indicate instant debt-paying ability.

             

To indicate the extent to which earnings are being distributed to common stockholders.

             

To indicate the margin of safety to creditors.

         

Ratio of Liabilities to Stockholders' Equity

           

[ Choose ]

             

To indicate future earnings prospects.

             

To indicate the ability to meet currently maturing obligations.

             

To assess the profitability of the investment by common stockholders.

             

To indicate instant debt-paying ability.

             

To indicate the extent to which earnings are being distributed to common stockholders.

             

To indicate the margin of safety to creditors.

         

Quick Ratio 

           

[ Choose ]

             

To indicate future earnings prospects.

             

To indicate the ability to meet currently maturing obligations.

             

To assess the profitability of the investment by common stockholders.

             

To indicate instant debt-paying ability.

             

To indicate the extent to which earnings are being distributed to common stockholders.

             

To indicate the margin of safety to creditors.

         

Rate Earned on Common Stockholders' Equity

           

[ Choose ]

             

To indicate future earnings prospects.

             

To indicate the ability to meet currently maturing obligations.

             

To assess the profitability of the investment by common stockholders.

             

To indicate instant debt-paying ability.

             

To indicate the extent to which earnings are being distributed to common stockholders.

             

To indicate the margin of safety to creditors.

         

Current Ratio 

           

[ Choose ]

             

To indicate future earnings prospects.

             

To indicate the ability to meet currently maturing obligations.

             

To assess the profitability of the investment by common stockholders.

             

To indicate instant debt-paying ability.

             

To indicate the extent to which earnings are being distributed to common stockholders.

             

To indicate the margin of safety to creditors.

         

Dividends per Share 

           

[ Choose ]

             

To indicate future earnings prospects.

             

To indicate the ability to meet currently maturing obligations.

             

To assess the profitability of the investment by common stockholders.

             

To indicate instant debt-paying ability.

             

To indicate the extent to which earnings are being distributed to common stockholders.

             

To indicate the margin of safety to creditors.

         

Earnings per Share (EPS) on Common Stock

Top Answer

Price-Earnings (P/E) Ratio  To indicate future earnings prospects.            Working Capital     To indicate... View the full answer

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