Question #1 Which ratio is used in the comparable multiples method? A) Quick ratio B) Current ratio C) Debt to equity ratio D) Price earnings ratio Question #2 Which financial behavior is historically caused by an increase in deregulations? A) Increase in risk taking by companies B) Increase in plant closure by companies C) Decrease in expansion planning by companies D) Decrease in new investment by companies

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Q: None

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Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.