The question 'Did the common stockholders receive an adequate return on their investment?' is answered through the use of [blank].
A)liquidity ratios
B)profitability ratios
C)coverage ratios
D)leverage ratios

Question

Quizplus · Accepted Answer

The question is focused on whether or not common stockholders received a satisfactory return on their investment, which relates to profitability. Therefore, profitability ratios such as return on equity (ROE) or earnings per share (EPS) would be the most relevant indicators in answering this question. Liquidity ratios relate to a company's ability to pay its short-term debts, coverage ratios indicate the company's ability to meet its interest and debt obligations, and leverage ratios indicate the amount of debt a company has relative to its assets.

The Question 'Did the Common Stockholders Receive an Adequate Return