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28 February, 11:06

The price-sales ratio is especially useful when analyzing firms that have:

a. positive PEG ratios.

b. a high Tobin's Q.

c. negative earnings.

d. increasing sales.

e. volatile market prices.

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Answers (1)
  1. 28 February, 12:51
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    Option C, negative earnings

    Explanation:

    The price to sale ratio is the ratio of market capitalization of any company to the total revenue and sale of the company. The lower is the price to sale ration, the more attractive the business seems too.

    The amount of money spent per dollar of company's sale. When the earnings are negative, the P-S ratio is not optimal and hence it is used to determine recovery solution

    Hence, option C is correct
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