If the Relative Price of S in Terms of T

question 16

Multiple Choice

If the relative price of S in terms of T is 2 and S has a nominal price of $1,then the relative price of T is

• A)$2.
• B)50 cents.
• C)1/2 S.
• D)Need more information to answer.

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Definitions:

Market Values

The value at which an asset is exchanged in a competitive auction scenario.

Market-To-Book Ratio

A financial ratio comparing a company's market value to its book value, used to assess valuation.

Market Price Per Share

The current price at which a share of stock can be bought or sold on the open market.

Book Value Per Share

A financial measure calculated by dividing a company's book value by its total number of outstanding shares.