Company A and Company B operate in the same industry. Company B has a price-to-book ratio that is much higher than A's. Both companies have price-to-book ratios greater than one. Which of the following could explain this difference, all else equal?
A)A uses less conservative accounting methods.
B)A has lower expected future dividend payout ratio.
C)A has higher expected growth.
D)A has many more shares outstanding.

Question

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The Answer of Company A and Company B operate in the same industry. Company B has a price-to-book ratio that is much higher than A's. Both companies have price-to-book ratios greater than one. Which of the following could explain this difference, all else equal?
A)A uses less conservative accounting methods.
B)A has lower expected future dividend payout ratio.
C)A has higher expected growth.
D)A has many more shares outstanding.

Company a and Company B Operate in the Same Industry