true or false: firms with high market to book ratios are likely to have higher earnings going forward.
true; a higher market value incorporates better income growth prospects.
true or false: firms with high market to book ratios are likely to have higher earnings going forward.
Are the following statements true? Statement 1: The Fama and French evidence that high book-to-market firms outperform low book-to-market firms even after adjusting for beta means that either high book-to-market firms are underpriced or the book-to-market ratio is a proxy for a systematic risk factor. Statement 2: Assume that a company announces unexpectedly high earnings in a particular quarter. In an efficient market one might expect an abnormal price change immediately after the announcement. A. Yes. B. No. Both are...
For most firms, market value is usually greater than book value. True or False
Firms with high P/E ratios earned higher average returns than firms with low P/E ratios earned the same average returns as firms with low P/E ratios earned lower average returns than firms with low P/E ratios had higher dividend yields than firms with low P/E ratios
Market to Book 1.417 1.76 Price-earnings 13.249 25.56 Market to Book 3.418 5.45 Compare ratios to industry, analyze the performance. Which are growth firms which are value firms? Compare ratios to industry, analyze the performance. Which are growth firms which are value firms? Target Corp Price-earnings 21.614 industry 16.04 Market to Book 1.417 industry 1.76 WDC Price-earnings 13.249 industry 25.56 Market to Book 3.418 industry 5.45
Companies with high ratios of fixed costs to total project value tend to have higher betas. True False
11. Fama and French (1991) and Reinganum (1988) found that firms with low market/book ratios had higher stock returns. This study provides evidence against __________ . A) Technical analysis B) Fundamental analysis C) Semi-strong form of market efficiency D) Strong form of market efficiency
Market value ratios relate the firm’s stock price to its earnings, cash flow, and book value per share, and thus give management an indication of what investors think of the company’s past performance and future prospects. If the liquidity, asset management, debt management, and profitability ratios all look good, then the market value ratios will be high, and the stock price will probably be as high as can be expected. Identify three market value ratios and explain what they mean...
QUESTION 12: The higher the times interest earned, the better. True False QUESTION 13: The market to book ratio and price earnings ratio indicate the firm's liquidity the firm's ability to quickly liquidate investments and turn them into cash the firm's efficiency in generating funding by selling their common stock market sentiment toward the firm
1. Which of the following industries is most likely not going to spend time, money and effort to differentiate its product? Select the correct answer below: higher education snack chips electricity clothing 2. True or false? It is a basic condition for a firm that it exists only as long as it makes a profit. This is particularly true in a monopolistic competitive environment, where firms will exit the market up to the point where there are no more losses...
TRUE OR FALSE: generally firms that have cash flows with high seasonal cash flows or cash flows that are just generally harder to forecast prepare cash budgets more frequently compared to firms with cash flows that are less seasonal and/ or more predictable?