If the Company's Profit Margin Is Constant Over Time and the Number

question 42

Multiple Choice

If the company's profit margin is constant over time and the number of shares of stock remain the same,the price to sales ratio and the price to earnings ratio

• A)Should provide similar valuations for the company's stock value
• B)Should provide very different valuations for the company's stock value
• C)Should not be related in any way
• D)All of the above are true

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