Market Value Ratios Multiple Choice Questions with Answers – PDF Download

MCQ 1: The price per share is $30 and earnings per share is $3.5 then price for earnings ratio would be:

1. 8.57
2. 0.0857
3. 0.11
4. 0.11

MCQ 2: The price per share is $25 and the cash flow per share is $6 then the price to cash flow ratio would be:

1. 0.24
2. 4.16
3. 0.0416
4. 0.24

MCQ 3: The techniques which are used to identify financial statements trends include:

1. common size analysis
2. percent change analysis
3. returning ratios analysis
4. Both A and B

MCQ 4: The ratios which relate firm's stock to its book value per share, cash flow and earnings are classified as:

1. return ratios
2. market value ratios
3. marginal ratios
4. equity ratios

MCQ 5: The high price to earnings ratio shows companies:

1. low dividends paid
2. high risk prospect
3. high growth prospect
4. high marginal rate