Which of the following firms would you expect to have the highest ratio of market value to book value?
A) Apple
B) Google
C) Southwest Airlines
D) Nucor (steel)

Question

Quizplus · Accepted Answer

As shown in Exhibit 4.1, firms such as Apple, Google, Microsoft, and Oracle have very high market value to book value ratios, because of their high investment in knowledge resources and technological expertise. In contrast, firms in more traditional industry sectors such as Nucor and Southwest Airlines have relatively low market to book ratios.

Which of the Following Firms Would You Expect to Have