Which of the Following Ratios Is the Most Commonly Used

question 19

Multiple Choice

Which of the following ratios is the most commonly used ratio for predicting the performance of a growth company?

• A) PE ratio
• B) PG ratio
• C) PEG ratio
• D) MV/BV ratio
• E) BV/MV ratio

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Definitions:

Incentive

A factor, often a reward or penalty, that motivates an individual or entity to act in a certain way.

Supply Curve

A visual diagram that illustrates how the price of a product correlates with the amount of the product that sellers are prepared to sell at various price levels.

Human Resource

A department within organizations focused on employee recruitment, management, and providing direction for the people who work in the institution.

Physical Resources

Physical resources refer to tangible assets and materials used in the production of goods and services, such as machinery, buildings, and raw materials.