Question
Company A has a higher price-to-sales ratio than company B. This might be because: Select one: a. Investors expect future sales to be higher for
Company A has a higher price-to-sales ratio than company B. This might be because:
Select one:
a. Investors expect future sales to be higher for company A than for company B
b. All of the listed answers
c. Company A has a lower profit margin on sales than company B
d. Investors expect the future profit margin on sales to be lower for company A than for Company B
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Answer d Investors expect the future profit margin on sales to be lower for company A than for Company B Explanations When a company has a higher pricetosales ratio than another company it means that ...Get Instant Access to Expert-Tailored Solutions
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
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