Multiple Choice
Which one of the following is true concerning the market-to-book ratio?
A) Extending the depreciation life of a firm's assets will increase the market-to-book ratio.
B) A decrease in the price of the stock on the stock exchange will increase the market-to-book ratio.
C) An increase in the market value of the common stock will increase the market-to-book ratio.
D) The market-to-book ratio is of most interest to the creditors of a firm.
E) The market-to-book ratio provides the selling price of a firm's inventory.
Correct Answer:

Verified
Correct Answer:
Verified
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