$$1,000,000$ and has $100,000$ shares outstanding. Therefore the book value of a share of stock

is equal to $$10.$

Question Eight

Explain why the following statement is true: if a firm has many intangible assets then we would

expect the ratio of the firm's market price per share $(M)$ to the book value of a share $(B)$ to be

much higher than a firm that has very few intangible assets.

Question Nine

Here are four ratios of M$/$B

$51$

$1\mathrm{.}08$

$11\mathrm{.}1$

$1\mathrm{.}02$

Here are the four companies $($in alphabetical order$)$

Allete

Ford Motor

Nvidia

Uber

Which company or companies do you think would not have a ratio of $51?$ Why

Which company or companies do you think are likely to have a ratio of $1\mathrm{.}08$ or $1\mathrm{.}02?$ Why?