[amp_mcq option1=”dividend to stock ratio” option2=”sales to growth ratio” option3=”cash flow to price ratio” option4=”price to cash flow ratio” correct=”option4″]
The correct answer is: D. price to cash flow ratio.
The price to cash flow ratio is a valuation ratio that compares a company’s stock price to its cash flow per share. It is calculated by dividing the company’s stock price by its cash flow per share. A high price to cash flow ratio indicates that investors are willing to pay a premium for the company’s stock, based on its expected future cash flows. A low price to cash flow ratio indicates that investors are not willing to pay a premium for the company’s stock, based on its expected future cash flows.
The other options are incorrect because:
- Dividend to stock ratio is a measure of a company’s dividend yield. It is calculated by dividing the company’s annual dividend per share by its stock price.
- Sales to growth ratio is a measure of a company’s sales growth rate. It is calculated by dividing the company’s annual sales growth rate by its sales growth rate from the previous year.
- Cash flow to price ratio is a measure of a company’s cash flow yield. It is calculated by dividing the company’s annual cash flow per share by its stock price.