Why is market book ratio below one? 7. Market book ratio is below one, which means that

Why is market book ratio below one?

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7. Market book ratio is below one, which means that it is signaling that the company's assets are worth more than the going concern. One of the cases would be to a good deal for a competitor or a privately owned company or an investor to take over GA and sell it in parts for profit. Competitors would be interested to know the prime property of what GA owns. Shareholder loyalty is also not guaranteed due to the adverse dividend policy which has never been enforced or talked about along in the corporate office as one of the profitable decision. A strategy that the firm may use to decrease risk would be by selling some assets. If it sells some assets the firm might/will have sufficient capital to continue its business. However, the assets are value to the firm, therefore 'if' sold the firm must measure the risks in this strategy to attain the best results, which is capital. 7. Market book ratio is below one, which means that it is signaling that the company's assets are worth more than the going concern. One of the cases would be to a good deal for a competitor or a privately owned company or an investor to take over GA and sell it in parts for profit. Competitors would be interested to know the prime property of what GA owns. Shareholder loyalty is also not guaranteed due to the adverse dividend policy which has never been enforced or talked about along in the corporate office as one of the profitable decision. A strategy that the firm may use to decrease risk would be by selling some assets. If it sells some assets the firm might/will have sufficient capital to continue its business. However, the assets are value to the firm, therefore 'if' sold the firm must measure the risks in this strategy to attain the best results, which is capital.