QUESTIONS 79 THROUGH 90 RELATE TO EQUITY INVESTMENTS

90. Among a company’s price to earnings (P/E), price to sales (P/S), and price to cash

flow (P/CF) ratios, it is most accurate to state that P/E ratios are generally more

stable from period to period than:

A. P/S ratios but not P/CF ratios.

B. P/CF ratios but not P/S ratios.

C. neither P/S ratios nor P/CF ratios.