The market-to-book value ratio is implies growth and success when it is:
A) greater than 0.
B) less than 10.
C) less than 0.
D) less than 1.
E) greater than 1.

Question

Quizplus · Accepted Answer

A market-to-book value ratio greater than 1 indicates that the market values the company's assets at a higher value than the book value of those assets. This suggests that investors expect the company to experience growth and success in the future.

The Market-To-Book Value Ratio Is Implies Growth and Success When