Question

What is the purpose of Market Test Ratios in financial analysis?

a.

To determine solvency of a company

b.

To analyze the effect of various factors on the market value of shares

c.

To calculate the earning per share

d.

To assess the liquidity position of a company

Answer: (b).To analyze the effect of various factors on the market value of shares Explanation:The purpose of Market Test Ratios in financial analysis is to analyze the effect of various factors on the market value of shares.

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