The price-book ratio is computed as the market value per share divided by the per share book value of:
A)total assets.
B)long-term debt.
C)equity.
D)long-term debt plus equity.
E)net working capital.

Question

Quizplus · Accepted Answer

The price-book ratio compares the market value per share to the book value per share of equity. It is used to evaluate whether a stock is over or undervalued.

The Price-Book Ratio Is Computed as the Market Value Per