complete QUESTIONS WITH ANSWERS ( A+ GRADED /
VERIFIED).
Price Earnings Ratio - ----Answers----market price per
share/earnings per share
Gross Margin Ratio - ----Answers----gross profit/net sales
Profit Margin Ratio - ----Answers----Net Income/Sales
Return on assets - ----Answers----net income/average total
assets
Return on total assets: - ----Answers----net income/average
total assets
Asset Turnover - ----Answers----net sales/average total
assets
Payout Ratio - ----Answers----cash dividends per common
share/earnings per share
Return on common stockholders' equity - ----Answers----
(net income - preferred dividends) / average common
stockholders' equity
, Cost of Capital - ----Answers----Treynor Industries is
investing in a new project. The minimum rate of return the firm
requires on this project is referred to as the:
Cash Budgeting - ----Answers----shows anticipated cash
flows, usually over a one to two year period
Depreciation - ----Answers----the process of allocating the
cost of an asset to expense over its useful life
straight line depreciation - ----Answers----(cost - salvage
value) / useful life
Declining Balance Depreciation - ----Answers----A method of
accelerated depreciation allowed by the IRS in certain
circumstances. Double Declining Balance Depreciation is its
most common form and is computed by using double the rate
used for straight line depreciation.
Units of Acitivity Depreciation - ----Answers----Cost -
Salvage Value)/ Total # of Units. Depends on units of output
Product Cost - ----Answers----identified with goods
purchased