Price-To-Book Value Ratio Cannot Be Used to Estimate the Value

question 51

True/False

Price-to-book value ratio cannot be used to estimate the value of firms with negative earnings or negative cash flows.

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Definitions:

Postsynaptic Membrane

The part of the nerve cell membrane that is on the receiving end of a synapse, responding to neurotransmitters released by the presynaptic neuron.

Synaptic Cleft

The narrow gap between the terminal end of a neuron and the neighboring neuron or muscle cell, across which neurotransmitters are released to transmit signals.

Schwann Cell

A type of glial cell that forms the myelin sheath around nerve fibers in the peripheral nervous system.

Neuron Cell Body

Enlarged portion of the neuron containing the nucleus and other organelles; also called nerve cell body.