Name an important characteristic of companies for which the price-to-book (P/B) ratio does not work well.
Question:
Name an important characteristic of companies for which the price-to-book (P/B) ratio does not work well.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
The important characteristic of the PB ratio is to gauge the valuation of a stock or index The highe...View the full answer
Answered By
Abdullah Waseem
Hello! I’m Abdullah Waseem! I have completed my graduation in Accounting & Finance from the University of Central Punjab, Lahore. I specialize in Finance, Accounting, Business, Management, Marketing, and Auditing. I have many experiences working as a content developer/writer. I have completed many projects for my clients and I have completed many assignments/expert questions for students globally. I always look for opportunities and for better growth. I’m sure that I will work efficiently with your online website. I have been online tutoring since I was doing my degree. I've helped so many students achieve their academic goals year after year. I always feel good while tutoring the students and providing help to complete their requirements. I can help you in completing the assignments and different projects. I am looking forward to working for you and being able to meet your work requirements and hope to work with you soon as well.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
The Goodson Company manufactures four different products that it ships to customers throughout Canada. Delivery times are not a driving factor in the decision as to which type of carrier to use...
-
Suicide rates in the United States tend to be much higher for men than for women, at all ages. That pattern may not extend to all professions, though. Death certificates obtained for the 3637 members...
-
Melvin Corporation uses the conventional retail method for financial reporting. The companys inventory records are summarized below. Estimate Melvins ending inventory using the conventional retail...
-
Derive the solutions for transient concentration profiles in the two-bulb apparatus (Example 21.5 in the text) for the binary case, and show that the multicomponent case can be derived as an...
-
Explain why sunk costs should not be included in a capital budgeting analysis, but opportunity costs and externalities should be included.
-
Discuss the economic benefits for primary and secondary markets. Briefly explain your understanding of an IPO, the net valuation of a firm and what can happen once the shares are traded on secondary...
-
After looking at the projections of the HomeNet project, you decide that they are not realistic. It is unlikely that sales will be constant over the four-year life of the project. Furthermore, other...
-
Lets say you want to purchase shares of Fontaine Ltd. and then hold this stock for six years. The company has a stated dividend policy of $2.00 annually per share for the next six years, at the end...
-
In the efficient market hypothesis (EMH), describe what is meant by the terms weak form efficiency, semistrong form efficiency, and strong form efficiency. How do these forms of market efficiency...
-
Oneonta & Co. owns equipment with a cost of $300,000 and accumulated depreciation of $120,000. The present value of the expected net cash flows from using this equipment is $115,000 (fair value)....
-
suppose your expectations regarding the stock price and holding period return ( hpr ) are as follows: boom 0 . 2 probability, $ 6 0 end price, 3 8 . 6 % hpr , normal growth 0 . 5 probability, $ 5 0...
-
A firm can lease a truck for 7 years at a cost of $ 4 0 , 0 0 0 annually. It can instead buy a truck at a cost of $ 7 4 , 0 0 0 , with annual maintenance expenses of $ 1 1 , 0 0 0 . The truck will be...
-
An annuity has an income of 2 0 0 per year for 1 0 years at an interest rate of 1 0 % what is the present value.
-
The common stock of Neal's Metal Works sells for $ 4 6 . 0 9 a share. The company will pay an annual dividend of $ 2 . 1 4 per share next week and expects to increase this dividend by 1 . 5 perc...
-
Suppose you take out a $ 2 8 4 , 5 0 0 mortgage for 1 5 years at 3 . 7 % interest. Find the monthly payment on this mortgage.
-
Hooper Insecticide Company is currently producing and selling 30 000 kilograms of Sta Ded monthly. This volume is 70% of capacity for Sta Ded. A wholesaler outside the company's marketing area offers...
-
Evaluate how many lines there are in a true rotational spectrum of CO molecules whose natural vibration frequency is w = 4.09 1014 s1 and moment of inertia I = 1.44 1039 g cm2.
-
Review the Dell case at the beginning of the chapter and then discuss the compet i tive advantages that Barnes & Noble would have over a small bookshop. What advantages does a small bookshop have?
-
Give two examples of service firms that work with other channel specialists to sell their products to final consumers. What marketing functions is the specialist providing in each case?
-
Discuss some reasons why a firm that produces installations might use direct distribution in its domestic market but use intermediaries to reach overseas customers.
-
(a) Calculate the annual returns and standard deviation of annual returns for the following portfolio. Assume that a correlation coefficient of 0.235 between the returns of the two stocks....
-
You are thinking about investing your money in the stock market. You have the following two stocks in mind: stock A and stock B. You know that the economy can either go in recession or it will boom....
-
[10] You are thinking about investing your money in the stock market. You have the following two stocks in mind: stock A and stock B. You know that the economy can either go in recession or it will...
Study smarter with the SolutionInn App