If the company's profit margin is constant over time,the number of common shares remain the same,and the dividend payout ratio stays the same,the price to sales ratio,the price to earnings ratio and the price to book value ratio should

Question

Quizplus · Accepted Answer

If the company's profit margin, number of common shares, and dividend payout ratio stay constant, the company's stock value should also remain relatively stable. This means that the price to sales ratio, price to earnings ratio, and price to book value ratio should all provide similar valuations for the stock value. Therefore, choice A is the correct answer.

If the Company's Profit Margin Is Constant Over Time,the Number