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Which ratio suits a firm that is currently making losses?

APrice to safety
BPrice to sales
CPrice to salary
DPrice to season
Answer & Solution
Correct answer: B. Price to sales
1. Earnings are negative, so P/E fails. 2. Revenue is still positive. 3. So price to sales is used. _Source: OpenStax Principles of Finance, Chapter 11, Stocks and Stock Valuation._
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