Basics Beginner: Sources of Company Information

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1.
A balance sheet contains information on a corporation's assets and dividend payments.
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False. A balance sheet contains information on a corporation's assets and liabilities.
2.
Only shareholders can receive an annual company stockholder report.
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False. Anyone can call corporations directly to receive a copy of their stockholder report.
3.
The creditworthiness of a company is measured by _______.
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Debt-to-equity ratio. A low ratio indicates a secure investment.
4.
The amount a company earns from the investments of its shareholders is called return on equity.
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True. Return on equity indicates how well the investments are working for the company.
5.
Which financial ratio measures a company's stock value?
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Price-to-earnings ratio. Price-to-earnings ratio measures a company's stock value.