Answer true or false to the following statements:

Question $8.$ A stock that sells for less than book value is undervalued.

Question $9.$ If a company's return on equity permanently drops, its price$/$book value ratio will generally drop more than proportionately, i$.$e$.,$ if the return on equity drops by half, the price$/$book value ratio will drop by more than half.

Question $10.$ A combination of a low price$/$book value ratio and a high expected return on equity suggests that a stock is undervalued.

Question $11.$ Other things remaining equal, a higher growth stock will have a higher price$/$book value ratio than a lower growth stock.

Question $12.$ In the Gordon Growth model, firms with higher dividend payout ratios will have higher price$/$book value ratios.