The ratios which relate firm's stock to its book value per share, cash flow and earnings are classified as _________?
Correct answer: B. market value ratios
- A. return ratios
- B. market value ratios
- C. marginal ratios
- D. equity ratios
Explanation
Market value ratios compare the market price of a firm’s stock with measures such as book value per share, earnings, and cash flow. Return and equity ratios focus on profitability or ownership structure instead.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
An equation in which total assets are multiplied to profit margin is classified as _________?
The price earnings ratio and price by cash flow ratio are classified as __________?
The return on assets = 5.5%, Total assets $3,000 and common equity is $1,050 then the return on equity would be _________?
The profit margin multiply assets turnover multiply equity multiplier is used to calculate __________?
The price per share divided by earnings per share is the formula for calculating ___________?
The total assets divided by common equity is a formula uses for calculating _________?