indicate what price investors are willing to pay for ownership in the company.
A) Activity ratios
B) Leverage ratios
C) Liquidity ratios
D) Market ratios
E) Profitability ratios

Question

Quizplus · Accepted Answer

Market ratios, such as the price-to-earnings (P/E) ratio, indicate what price investors are willing to pay for ownership in a company by comparing the company's current market price to its earnings, dividends, or other financial metrics.

Indicate What Price Investors Are Willing to Pay for Ownership