Examveda
Examveda

Ratios which relate firm's stock to its book value per share, cash flow and earnings are classified as

A. return ratios

B. market value ratios

C. marginal ratios

D. equity ratios

Answer: Option B

Solution(By Examveda Team)

Ratios which relate firm's stock to its book value per share, cash flow and earnings are classified as market value ratios. Market value ratios are used to evaluate the current share price of a publicly-held company's stock.

This Question Belongs to Commerce >> Financial Management

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