Which of the following is NOT a technique for valuing a firm's common stock?
A) present value of free cash flow to equity
B) present value of dividends
C) price-earnings ratio
D) price-book value ratios
E) price-cost of goods sold ratio

Question

Quizplus · Accepted Answer

Price-cost of goods sold ratio is not a technique for valuing a firm's common stock. Instead, it is a measure of a company's efficiency in managing its cost of goods sold. The other options - present value of free cash flow to equity, present value of dividends, price-earnings ratio, and price-book value ratios - are all common techniques for valuing a firm's common stock.

Which of the Following Is NOT a Technique for Valuing