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Commerce · Q296

Financial Management

Graduate and Post Graduate · Commerce · question 296

Q296

Price earning ratio and price by cash flow ratio are classified as

A.
marginal ratios
B.
equity ratios
C.
return ratios
D.
market value ratios
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Price earning ratio and price by cash flow ratio are classified as market value ratios. Market value ratios are used to evaluate the current share price of a publicly-held company's stock.