A Company with a Return on Equity That Consistently Exceeds

question 53

Multiple Choice

A company with a return on equity that consistently exceeds the industry average ROCE will generally have shares that sell at a

• A)market-to-book ratio equal to the industry average.
• B)lower market-to-book ratio than the industry average.
• C)higher market-to-book ratio than the industry average.
• D)higher market price than its competitors.

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Definitions:

Ph.D.

A Ph.D. is a Doctor of Philosophy degree, a postgraduate academic degree awarded by universities, signifying advanced research and scholarly achievement in a specific field.

Employed

The condition of having paid work or being engaged in an activity or job that generates income.

Labor Force

The total number of people employed or actively seeking employment in a given economy.

Discouraged Workers

Individuals not actively seeking employment because they believe no jobs are available for them.