Which one of the following sets of ratios applies most directly to shareholders?
A) Return on assets and profit margin
B) Quick ratio and times interest earned
C) Price-earnings ratio and debt-equity ratio
D) Market-to-book ratio and price-earnings ratio
E) Cash coverage ratio and times equity multiplier

Question

Quizplus · Accepted Answer

The market-to-book ratio and price-earnings ratio are directly related to shareholders as they provide insights into the market valuation of the company relative to its book value and earnings, which are of primary interest to shareholders.

Which One of the Following Sets of Ratios Applies Most