You Want to Know the Value of a Firm's Equity

question 101

Multiple Choice

You want to know the value of a firm's equity today in relation to the cost of that equity. Which of the following ratios should you need the most?

• A) Price-earnings
• B) Price-book
• C) Price-sales
• D) Price-cash flow
• E) Price-asset

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Definitions:

Avoidant Attachment

A type of insecure attachment style characterized by an individual's efforts to avoid close emotional bonds and reliance on others.

Anxious Attachment

A type of attachment characterized by intense fear of abandonment and anxiety about relationships.

Temperament

The innate aspect of an individual's personality, such as mood or behavior predispositions.

Social Identity

The “we” aspect of our self-concept; the part of our answer to “Who am I?” that comes from our group memberships.