Practice mode Finance

Ratios that relate a firm’s share price to its book value per share, cash flow and earnings are known as what?

Correct answer C. Market value ratios

Explanation

Market value ratios, such as the price/earnings and market-to-book ratios, connect the market price of shares to accounting figures, showing what investors think of the company.

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Ratios that relate a firm’s share price to its book value per share, cash flow and earnings are known as what?

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Ratios that relate a firm’s share price to its book value per share, cash flow and earnings are known as what?

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