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Information on Four Investment Proposals Is Given Below

question 93

Multiple Choice

Information on four investment proposals is given below: Information on four investment proposals is given below:   What are preference rankings of the four proposals according to the profitability index? A)  3,4,1,2. B)  1,2,3,4. C)  1,3,2,4. D)  2,1,4,3.
What are preference rankings of the four proposals according to the profitability index?


Definitions:

Total Assets

The sum of all current and non-current assets owned by a company, indicating the total resources available for use in operations.

Market To Book Ratio

A ratio used to compare a company's market value (market capitalization) to its book value, providing insight into how the market values the company's equity.

Book Value Per Share

The financial measure that indicates the per-share value of a company's equity available to shareholders, calculated by dividing net assets by the total number of outstanding shares.

Total Market Value

The aggregate valuation of a company, measured by multiplying its current share price by its total outstanding shares.

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