Describe three ratios that relate a firm’s stock price to itsearnings, cash flow, and book value per share, and write outtheir equations.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
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Describe three ratios that relate a firm’s stock price to its
earnings, cash flow, and book value per share, and write out
their equations.

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