单项选择题

Which of the following statements least accurately describes the advantages and disadvantages of valuation with the P/S multiple

A．Advantage: P/S is meaningful, even for companies in financial distress.Disadvantage: Sales growth is not always an indicator of profitability.
B．Advantage: Sales forecasts are not susceptible to distortion from revenue recognition practices.Disadvantage: Reported sales figures are easier to manipulate than earnings or book values.
C．Advantage: P/S ratios are particularly appropriate for valuing stocks in mature or cyclical industries.Disadvantage: P/S ratios do not capture differences in cost structures across companies.

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单项选择题An analyst gathered the following financial data about a company (in million dollars): market value$45sales$600earnings-$18book value$27What is the P BV ratio for the company

A．0.42
B．1.67
C．2.32

单项选择题Which of the following statements least accurately describes the advantages and disadvantages of valuation with the P E multiple

A．Advantage: P/E differences are significantly related to long-run average stock returns.Disadvantage: The volatile, transitory portion of earnings makes the interpretation of P/Es difficult for analysts.
B．Advantage: Earnings power is the primary determinant of investment value.Disadvantage: Management discretion within allowed accounting practices can distort reported earnings.
C．Advantage: P/E valuation can accommodate negative earnings.Disadvantage: P/E valuation is difficult to use for firms with relatively few fixed assets.