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Which Statement Is True in Relation to the Book-To-Market Ratio

Question 34

Multiple Choice

Which statement is true in relation to the book-to-market ratio:


A) value shares have a low book to market ratio
B) a book-to-market ratio of (1) would mean that the book value in the balance sheet equals the current market value
C) the calculation is the number of shares multiplied by the market value of equity divided by 100
D) if the book value in the balance sheet equals the current market value then this would be known as a company of growth shares.

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