Company A has a higher price-to-sales ratio than company B. This might be because:

Select one:

a. Investors expect future sales to be higher for company A than for company B

b. All of the listed answers

c. Company A has a lower profit margin on sales than company B

d. Investors expect the future profit margin on sales to be lower for company A than for Company B

Answer rating: 100% (QA)

Answer d Investors expect the future profit margin on sales to be lower for company A than for Company B Explanations When a company has a higher pricetosales ratio than another company it means that ... View the full answer