A firm has a P/E ratio of 24 and a ROE of 12%.Its market-to-book-value ratio is _________.
A) 2.88
B) 2.00
C) 1.75
D) 0.69

Name: A firm has a P/E ratio of 24 and a ROE of 12%.Its market-to-book-value ratio is _________. A) 2.88 B) 2.00 C) 1.75 D) 0.69
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Question

Quizplus · Accepted Answer

The market-to-book-value ratio can be calculated using the formula: Market-to-Book Ratio = P/E Ratio * ROE. Substituting the given values: 24 * 0.12 = 2.88.

A Firm Has a P/E Ratio of 24 and a ROE