if a company market to book ratio is less than 1 ,the market value added must...
if a company market to book ratio is less than 1 ,the market value added must be negative - true or false
Homework Answers
solution :
Price-to-book value (P/B) is the ratio of market value of a company's shares . (or has a P/B less than one),investors assume one of two things: Either the market . or the company is earning a very poor (even negative) return on its assets. If the former is true, then investors are should reject the company's
A long-term investor may buy a stock only if it is trading below its book value, whichmeans a market-to-book ratio less than 1, and may sell when the price-earningsratio is higher than the industry average.
Negative book value does not matter. With the book to market ratio it does not matter if a company has a negative book value. ... If the book value of the company's negative it will have a negative book to market value and the companywill not show up in your results.
Add Answer to:
if a company market to book ratio is less than 1 ,the market
value added must...
A company with a market-to-book ratio less than one is expected to grow it cash flow...
A company with a market-to-book ratio less than one is expected to grow it cash flow quickly. Question 6 options: True False
For most firms, market value is usually greater than book value. True or False
For most firms, market value is usually greater than book value. True or False
A market with a monopoly firm will have higher prices and less output than if the...
A market with a monopoly firm will have higher prices and less output than if the market were perfectly competitive. True False In monopolistically competitive markets, the firms sell identical products. True False For a monopolist, the marginal revenue (MR) curve is the same line as the demand (D) curve. True False If marginal revenue for the 5th unit of a good is negative, then total revenue must be falling. True False Collusion is most often found among firms in...
1-If the fair value of a stock is greater than its market value, it means that:...
1-If the fair value of a stock is greater than its market value, it means that: A. The stock has a low level of risk B. The stock offers a high dividend C. The market is undervaluing the stock. D. The market is overvaluing the stock 2-A profitability index of .85 for a project means that: A-The present value of benefits is 85% greater than the project's costs. B. The project's NPV is greater than zero. C. The project returns...
7. The relationship between the book value of shareholders' equity and the firm's Market Value Added...
7. The relationship between the book value of shareholders' equity and the firm's Market Value Added (MVA) and Economic Value Added (EVA) Yesterday, Extensive Enterprise Inc. released its 2015 annual report on the company's website. While reading the report for her boss, Jia came across several terms about which she was unsure. She leaned around the wall of her cubicle and asked her colleague, Ryker, for help. Aa Aa ia Ryker, do you have a second to help me with...
1. If a stock has a market beta less than 1, the expected return will be...
1. If a stock has a market beta less than 1, the expected return will be less than expected return of market portfolio. True or False? 2. ABC, Inc., has a beta of 1.99. The risk-free rate is 3.45% and the market risk premium is 5.74%. What is the required rate of return on ABC's stock? Note: Convert your answer to percentage and round off to two decimal points. 3. Semi-strong-form efficient markets are not weak-form efficient. True or False?
The relationship between book value and market value cannot be predicted; hence, it would be possible...
The relationship between book value and market value cannot be predicted; hence, it would be possible for Apple stock to have book value of $44 billion on the firm's books, but have a much larger market value of $242 billion. True False The Agency Theory proposed __________ as a solution for the potential problem of senior managers acting in their own self- interests, not in the interests of owners. none of the above large bonuses tied to revenue growth high...
Why is the market value of equity (stock) in a firm facing bankruptcy less than the...
Why is the market value of equity (stock) in a firm facing bankruptcy less than the book value of its equity? Choose all that are correct: Question 4 options: The current market value reflects the expected payout to equity holders in a bankruptcy; this payout may be $0.0. The firm must pay off all of its its liabilities before any money can be paid to equity holders. There is likely to be no money left after paying off the liabilities....
Click here to read the eBook: Market Value Ratios PRICE/EARNINGS RATIO A company has an EPS of $3.60, a book value pe...
Click here to read the eBook: Market Value Ratios PRICE/EARNINGS RATIO A company has an EPS of $3.60, a book value per share of $37.08, and a market/book ratio of 2.5x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Round your answer to two decimal places. x
a firms market value is usually greater than book value: (choose 1)
a firms market value is usually greater than book value: (choose 1)
A market with a monopoly firm will have higher prices and less output than if the market were perfectly competitive. True False In monopolistically competitive markets, the firms sell identical products. True False For a monopolist, the marginal revenue (MR) curve is the same line as the demand (D) curve. True False If marginal revenue for the 5th unit of a good is negative, then total revenue must be falling. True False Collusion is most often found among firms in...
7. The relationship between the book value of shareholders' equity and the firm's Market Value Added (MVA) and Economic Value Added (EVA) Yesterday, Extensive Enterprise Inc. released its 2015 annual report on the company's website. While reading the report for her boss, Jia came across several terms about which she was unsure. She leaned around the wall of her cubicle and asked her colleague, Ryker, for help. Aa Aa ia Ryker, do you have a second to help me with...
Most questions answered within 3 hours.
-
For a 2-Level design, with 8 factors, a recommended screening
design model is:
a. Taguchi L12...
asked 20 minutes ago -
1. Define a function in python that returns the sum of the
following 4 lists. Remember...
asked 11 minutes ago -
Elspeth, associate research specialist for a marketing research
firm in a large Midwestern city, had just...
asked 11 minutes ago -
If domestic savings are insufficient to finance domestic private
investment and exports are greater than imports,...
asked 27 minutes ago -
Q.4.
Use the format in Exhibit 9-1 to compute the ending LIFO
inventory and cost of...
asked 32 minutes ago -
Discuss the different receiving and dispatch equipment required
for uploading and loading different types of material...
asked 37 minutes ago -
Which of the following is true for simultaneous testing?
a. Net specificity is greater than the...
asked 41 minutes ago -
Discuss the importance of homologous recombination and
transposition in natural horizontal gene transfer and evolution. Be...
asked 45 minutes ago -
Brittle material has the properties Sut = 30 kpsi and Suc = 90
kpsi. Using the...
asked 44 minutes ago -
*
write about Plastic recycling statistics ( Plastic recycling rate )
last two years , i...
asked 43 minutes ago -
The activation energy for a given reaction is 50.3 kJ/mol. If
the rate constant for the...
asked 1 hour ago -
An entomologist discovers a dung beetle rolling a ball of dung
along the ground, and decides...
asked 3 hours ago