One advantage of price/sales (P/S) multiples over price to earnings (P/E) and price-to-book value (PBV) multiples is that:

One advantage of price/sales (P/S) multiples over price to earnings (P/E) and price-to-book value (PBV) multiples is that:


A) P/S is easier to calculate.


B) P/S can be used for distressed firms.


C) Regression shows a strong relationship between stock prices and sales.



Answer: B


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