问题如下:
4. Cannan’s preference to use the P/E ratio over the P/S ratio is best supported by:
选项:
A. Reason 1
B. Reason 2
C. Reason 3
解释:
C is correct.
The price to sales (P/S) ratio fails to consider differences in cost structures. Also, while share price reflects the effect of debt financing on profitability and risk, sales is a pre-financing income measure and does not incorporate the impact of debt in the firm’s capital structure. Earnings reflect operating and financial leverage, and thus the price-to-earnings (P/E) ratio incorporates the impact of debt in the firm’s capital structure.
我们在讨论FCFF和FCFE的比较时, 有说FCFF 不考虑leverage 为什么这道题,考虑了leverage会更优?什么时候考虑leverage更优什么时候不考虑leverage更好?