___________ ratios measure the impact of external market forces on the internal performance of a firm.
A)Price
B)Profitability
C)Liquidity
D)Asset-utilization
E)Debt-utilization

Question

Quizplus · Accepted Answer

The price ratios relate the internal performance of the firm to the external judgment of the marketplace, in terms of value. What is the firm's end result in market value? The price ratios indicate the expectations of the market, relative to other companies. For example, a firm with a high price-to-earnings ratio has a higher market price, relative to $1 of earnings, than a company with a lower ratio.

___________ Ratios Measure the Impact of External Market Forces on the Internal