Shareholders probably have the most interest in which one of the following sets of ratios?
A)return on assets and profit margin
B)long-term debt and times interest earned
C)price-earnings and debt-equity
D)market-to-book and times interest earned
E)return on equity and price-earnings

Question

Quizplus · Accepted Answer

Shareholders are most interested in the return on equity, as it measures the return they are receiving on their investment. Price-earnings ratio is also important to shareholders, as it indicates the market's perception of the company's future earnings potential.

Shareholders Probably Have the Most Interest in Which One of the Following