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
AnswerAnswer: 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.