The Market-To-Book Ratio Is Measured As

question 104

Multiple Choice

The market-to-book ratio is measured as:

• A)market value of equity per share divided by book value of equity per share.
• B)market price per share of stock divided by earnings per share.
• C)net income divided by market price per share of stock.
• D)net income times market price per share of stock.
• E)total equity divided by total assets.

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by how closely it matches one's prototype of that event.

Confirmation Bias

A propensity for selecting, interpreting, favoring, and recollecting data that affirms one's previously held beliefs or suppositions.

Fixation

In psychology, a persistent focus of attention or obsession on an object or subject.

Framing Effect

Describes how the presentation or framing of information can influence individuals' decisions and perceptions.