Yesterday,ABC stock sold for $28 a share.Today,the overall market fell,and ABC stock is now selling for $22 a share.Which of these ratios for ABC will be affected by this market reaction? Assume all else is held constant.
A) Enterprise value multiple and price-earnings ratio
B) Earnings per share and price-earnings ratio
C) Return on equity and return on assets
D) Return on book equity and market-to-book ratio
E) Price-earnings ratio and return on book equity
Correct Answer:
Verified
Q20: All of the following are financial leverage
Q21: Ratio analysis works best when evaluating the
Q22: The amount shareholders are willing to pay
Q23: Which portion of the DuPont identity measures
Q24: Which one of these is calculated as:
Q26: Firms with high enterprise value multiples are
Q27: Which ratio calculates the amount of sales
Q28: If a firm decreases its operating costs,all
Q29: Enterprise value is computed as
A)Price per share
Q30: Which ratio computes the amount of net
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents