WorksheetsFInance and investment Ratios CFU
Total questions: 7
Worksheet time: 21mins
Name
Class
Date
1.
1. What is the price to earnings ratio?
- It is the ratio of a company's current share price to its earnings per share.
- It is the ratio of a company's total assets to its total liabilities.
- It is the ratio of a company's revenue to its expenses.
- It is the ratio of a company's dividend to its share price.
4 lines
2.
1. Calculate the Earnings per share.
What is the correct formula for calculating Earnings per Share (EPS)?
- Net Income / Number of Shares Outstanding
- Total Revenue / Number of Shares Outstanding
- Net Income / Total Assets
- Gross Profit / Number of Shares Outstanding
4 lines
3.
1. What is the dividend yield?
- A) The ratio of annual dividends per share to the stock's price per share
- B) The total revenue generated by a company
- C) The percentage increase in stock price over a year
- D) The amount of profit after taxes
4 lines
4.
1. What is the current yield for bonds?
- A) The ratio of the bond's annual coupon payment to its market price
- B) The ratio of the bond's face value to its market price
- C) The bond's yield to maturity
- D) The bond's coupon rate
4 lines
5.
1. What is the Yield to Maturity (YTM) for bonds?
- A) The annual coupon payment divided by the face value
- B) The total return anticipated on a bond if held until it matures
- C) The difference between the purchase price and the face value
- D) The interest rate paid by the issuer on the bond's face value
4 lines
6.
Explain the impact of changing interest rates on bond prices.
4 lines
7.
Describe the relationship between risk and return.
4 lines
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