Which of the Following Valuation Measures Is Often Used to Compare

question 48

Multiple Choice

Which of the following valuation measures is often used to compare firms that have no earnings?

• A) price-to-book ratio
• B) P/E ratio
• C) price-to-cash-flow ratio
• D) price-to-sales ratio

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Definitions:

Reminiscence Bump

The tendency for older adults to have increased recollection for events that occurred during their adolescence and early adulthood.

Memory Retrieval

The process of recalling or bringing into consciousness information or experiences stored in memory.

Youth

The period of life between childhood and adulthood; characterized by the development and maturation of the individual.

Implicit Memory

A type of memory that allows individuals to perform tasks without conscious awareness of these previous experiences, such as procedural memory for skills.