Which of the following ratios does not relate to market price of a company under analysis?
A)Price-to-earnings
B)Earnings yield
C)Price-to-book
D)Return on common equity

Question

Quizplus · Accepted Answer

Return on common equity is a measure of profitability, and is not directly related to a company's market price. The other ratios listed all involve market price in some way - price-to-earnings and earnings yield compare the company's earnings to its stock price, while price-to-book compares the company's market value to its book value.

Which of the Following Ratios Does Not Relate to Market