Which of the Following Is Not One of the Relative

question 70

Multiple Choice

Which of the following is not one of the relative valuation multipliers used in fundamental analysis?

• A) P/E ratio
• B) P/S ratio
• C) P/M ratio
• D) P/B ratio

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Definitions:

Direct Materials

Raw materials that are directly traceable and integral to the finished product in the manufacturing process.

Selling Costs

All costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer.

Indirect Costs

Costs that are not directly traceable to a single product or operation, such as overhead.

Opportunity Costs

The potential benefit missed out on when choosing one alternative over another.