Choice "B" is correct. Price-sales ratio projection approaches can provide meaningful information in the event that net earnings data is not available.
Choice "c" is incorrect. P/E ratios are not meaningful if earnings are either extremely small or a loss.
Choice "a" is incorrect. PEG ratios are based on the P/E ratio which is not meaningful when the analyzed company is either experiencing losses or has small earnings.
Choice "d" is incorrect. This is a distracter. There is no "return on residual P/E ratio" methodology.
