The correct answer is: D. market value ratios.
Price-earnings ratio (P/E ratio) and price-to-cash flow ratio (P/CF ratio) are both market value ratios. They are used to compare the value of a company’s stock to its earnings or cash flow. A high P/E ratio indicates that investors are willing to pay a premium for a company’s stock, while a low P/E ratio indicates that investors are not as confident in the company’s future prospects. A high P/CF ratio indicates that a company is generating a lot of cash flow, while a low P/CF ratio indicates that a company is not generating as much cash flow.
Marginal ratios are used to measure the profitability of a company. They are calculated by dividing a company’s net income by its sales or assets. Equity ratios are used to measure the financial leverage of a company. They are calculated by dividing a company’s debt by its equity. Return ratios are used to measure the return on investment of a company. They are calculated by dividing a company’s net income by its assets or equity.