QuestionAugust 10, 2025

Investors anticipate movements in the market value of a stock using: dividends per share debt equity ratio dividend payout ratio return on equity P/E ratio.

Investors anticipate movements in the market value of a stock using: dividends per share debt equity ratio dividend payout ratio return on equity P/E ratio.
Investors anticipate movements in the market value of a stock using:
dividends per share
debt equity ratio
dividend payout ratio
return on equity
P/E ratio.

Solution
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Answer

Dividends per share, debt equity ratio, dividend payout ratio, return on equity, and P/E ratio are used to anticipate stock market value movements. Explanation 1. Identify Key Metrics The key metrics used to anticipate stock market value movements are dividends per share, debt equity ratio, dividend payout ratio, return on equity, and P/E ratio. 2. Understand Each Metric - **Dividends per Share**: Indicates the cash flow returned to shareholders. - **Debt Equity Ratio**: Measures financial leverage; high values may indicate risk. - **Dividend Payout Ratio**: Shows the proportion of earnings paid as dividends. - **Return on Equity (ROE)**: Indicates profitability relative to shareholder equity. - **P/E Ratio**: Compares a company's current share price to its per-share earnings.

Explanation

1. Identify Key Metrics<br /> The key metrics used to anticipate stock market value movements are dividends per share, debt equity ratio, dividend payout ratio, return on equity, and P/E ratio.<br /><br />2. Understand Each Metric<br /> - **Dividends per Share**: Indicates the cash flow returned to shareholders.<br /> - **Debt Equity Ratio**: Measures financial leverage; high values may indicate risk.<br /> - **Dividend Payout Ratio**: Shows the proportion of earnings paid as dividends.<br /> - **Return on Equity (ROE)**: Indicates profitability relative to shareholder equity.<br /> - **P/E Ratio**: Compares a company's current share price to its per-share earnings.
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