A company with a return on equity that consistently exceeds the industry average ROCE will generally have shares that sell at a

Question

Quizplus · Accepted Answer

A company with a high and consistent return on equity is seen as a better investment opportunity compared to its competitors. As a result, investors are willing to pay a premium for its shares, leading to a higher market-to-book ratio than the industry average. Therefore, option C is the best answer.

A Company with a Return on Equity That Consistently Exceeds