Market to Book Ratio Is a Ratio That Shows the Discrepancy

question 49

Multiple Choice

Market to book ratio is a ratio that shows the discrepancy between the:

• A)stock market value of an FI's equity and the book value of its equity
• B)historic value of an FI's equity and the book value of its equity
• C)US dollar value of an FI's equity and the book value of its equity
• D)value of an FI's debt and the book value of its debt

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Definitions:

Dividend Yield

The annual dividend payment divided by the current market price of the stock, expressing the dividend as a percentage of the stock price.

Tax Deductible

Expenses that can be subtracted from gross income to reduce taxable income, ultimately decreasing the tax owed.

Dividends

Money distributed to shareholders by a corporation, usually from the company's profits.

Business Expense

Costs incurred in the ordinary course of business, including salaries, rent, and office supplies, among others.