Which of the following is NOT an argument that book value is not useful for investment analysis?
A) It bears no relationship to market value.
B) It provides little information beyond stockholders' equity reported on the balance sheet.
C) The ratio of market price to book value can be used to rank stocks.
D) Both a and b

Question

Quizplus · Accepted Answer

The ratio of market price to book value is actually used in investment analysis to compare the value of a company's stock to its book value, indicating its potential over or undervaluation. This contradicts the notion that book value is not useful for investment analysis, making option C the correct answer.

Which of the Following Is NOT an Argument That Book