The price:sales ratio is especially useful when analyzing firms that have which one of the following?
a. volatile market prices
b. positive PEG ratios
c. a negative Tobin's Q
d. negative profits
e. increasing sales

Respuesta :

When a firm have a negative profits, the financial tool called a price:sales ratio is very useful when analyzing them.

What is a price:sales ratio?

This is a financial ratio that tell the extent of how the market values every dollar of the company's sales.

It is effective in valuing growth stocks that is yet to turn a profit or have suffered a temporary setback.

Therefore, the Option D is correct.

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