CH 5 Market Ratios

Card Set Information

Author:
Giovanni
ID:
157003
Filename:
CH 5 Market Ratios
Updated:
2012-06-03 05:51:57
Tags:
Accounting Market ratio
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Description:
Market ratios are used to determine a companies performance
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  1. Earnings Per Share
    Net Income / Average number of common shares outstanding

    used to analyze a companies performance. To calculate the earnings for each share
  2. Price Earning Ratio aka PE Ratio
    Market Price Per Share / Earnings Per Share

    Used to analyze the investment potential of a common stock
  3. Divedend Yield Ratio
    Divend per share / Market Price per share

    Indicates the cash return on each shareholders investment
  4. Stock Price Return
    Market Price1 - Market Price0 + Divendeds / Market Price0
  5. Dupont ROE Model
    Return on Equity= Return on Assets X Capital Structure Leverage X Common Equity Leverage

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