475FinanceMedium
Which of the following set of ratios relates the market price of the firm’s common stock to selected financial statement items?
AProfitability Ratios
BLeverage Ratios
CLiquidity Ratios
DMarket Value Ratios
Correct answer
D. Market Value Ratios
Explanation
It determines the market price or fair value of the common stock of company and compare it with the items of balance sheet like shareholder’s equity etc.