Choice "D" is correct. The price sales ratio uses sales per share as a basis for valuation and can be used in start-up situations or under conditions where earnings data is not meaningful.
Choice "b" is incorrect. P/E projections rely on meaningful earnings figures.
Choice "c" is incorrect. PEG projections rely on meaningful earnings figures.
Choice "a" is incorrect. Constant growth models are less adaptable to low earnings situations than the price sales ratio. Constant growth would require adjustments to return and growth amounts to produce realistic results.
