Company A and Company B operate in the same industry. Company B has a price to book
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Question:
Company A and Company B operate in the same industry. Company B has a price to book value that is much higher than A's. Both companies have price to book value ratios greater than one. Which of the following could explain this difference, all else equal?
A). A uses less conservative accounting methods
B). A has lower expected future dividend payout ratio
C). A has higher expected growth
D). A has many more shares outstanding
Related Book For
Financial Accounting An Introduction to Concepts, Methods and Uses
ISBN: 978-1133591023
14th edition
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
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