Quiz Ch 04 – T/F M/B Ratio and Investor Perception

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: The market/book (M/B) ratio reflects the price investors are willing to pay for one dollar of accounting book value. Generally, investors consider companies with higher M/B ratios to be less risky and/or have greater potential for future growth.

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