Quiz on Lesson ” How To Calculate Stock Terms “

What is the formula for calculating the debt to equity ratio?

A) Total debt divided by total equity

B) Total equity divided by total debt

C) Total equity plus total debt divided by total debt

What is the purpose of the price to earnings ratio?

A) To measure the company's book value

B) To measure the company's dividend yield

C) To measure the current market price of the stock in relation to its earnings

Which of the following is NOT recommended to look at when valuing a company?

A) Earnings per share

B) Dividend yield

C) Equity growth off of the balance sheet

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