Firms such as Apple and Google will tend to have a higher ratio of market value to book value than industrial companies such as Nucor Steel.

Question

Quizplus · Accepted Answer

As shown in Exhibit 4.1, firms such as Apple and Google 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, have relatively low market to book ratios.

Firms Such as Apple and Google Will Tend to Have