Which One of the Following Is True Concerning the Market-To-Book

question 338

Multiple Choice

Which one of the following is true concerning the market-to-book ratio?

• A) Extending the depreciation life of a firm's assets will increase the market-to-book ratio.
• B) A decrease in the price of the stock on the stock exchange will increase the market-to-book ratio.
• C) An increase in the market value of the common stock will increase the market-to-book ratio.
• D) The market-to-book ratio is of most interest to the creditors of a firm.
• E) The market-to-book ratio provides the selling price of a firm's inventory.

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Definitions:

Marketing Claims

Statements made by companies about their products or services intended to attract consumers.

Deceptive Advertising

Marketing practices involving false claims or misleading statements to trick consumers into buying a product or service.

False Statement

Incorrect or untruthful information provided, particularly in a context where honesty is expected or required.

Competitor's Products

Competitor's Products are goods or services offered by businesses operating in the same market space aiming to fulfill similar customer needs or demands as one's own products.