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:

Activities

The types of work, or actions, involved in a manufacturing or service process.

Differential Costs

Differential costs refer to the difference in total cost that will result from selecting one alternative over another in decision-making processes.

Opportunity Costs

The value of the best alternative forgone when a decision is made to pursue a particular course of action.

Mixed Costs

Mixed costs are expenses that contain both variable and fixed cost elements, changing in total with the level of activity but not directly in proportion to changes in activity level.