Market value ratios indicate
I. whether the firm is using its assets productively;
II. whether the firm is liquid;
III. whether the firm is profitable;
IV. how highly the firm is valued by investors
A)I only
B)II only
C)II and III only
D)IV only

Question

Quizplus · Accepted Answer

Market value ratios are used to assess the market value of a company's shares and how highly it is valued by investors. This includes metrics such as price-to-earnings ratio (P/E ratio), price-to-book ratio (P/B ratio), and dividend yield. Market value ratios do not directly indicate whether the firm is using its assets productively, whether it is liquid, or whether it is profitable.

Market Value Ratios Indicate