Which One of the Following Is True About Book and Market

question 63

Multiple Choice

Which one of the following is true about book and market values?

• A) Book-to-market values provide information about the efficient use of assets.
• B) A high book to market ratio is well perceived by the market.
• C) If the return on equity is lower than the required rate of return, the market-to-book ratio will decrease.
• D) Determining prices in regulated industries depends on the market value of assets.

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Definitions:

Piece Rate Pay

A compensation system where employees are paid based on the quantity of work completed or the number of units produced.

Profit Sharing

A company policy of distributing a portion of its profits to its employees.

Cost Reductions

Strategies or actions taken to decrease expenses and improve financial efficiency.

Group Incentive Pay

A compensation system where a team of employees is rewarded collectively based on the group's overall performance.