Which pair suits comparing investment banks?
APrice to sales, EBITDA
BEmbedded value, reserves
CPrice to tangible book, ROTE
DNet interest margin, AUM
Answer & Solution
Correct answer: C. Price to tangible book, ROTE
Investment banks are compared on price to tangible book value and return on tangible equity.
Keep practising Valuation (Finance)
Browse all Valuation (Finance) questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
Startups raise money in several rounds rather than one lump sum mainly to:Down rounds were common after which events?A new round priced below the previous round's share price is a:Series A priced shares at 500 and Series B at 650. Series B is an:What happens to existing holders' ownership with each new financing round?Founders hold 100 of 125 shares after a round. Their stake is:Post-money is 90 crore with 150 shares outstanding. The value per share is:Founders own 100 shares. A new investor gets 25 new shares for 5 crore. Pre-money is: