A High Price to Book Ratio May Indicate Which One

Multiple Choice

A high price to book ratio may indicate which one of the following?

A) The firm expanded its plant and equipment in the past few years.
B) The firm is doing a better job controlling its inventory expense than other related firms.
C) Investors may believe that this firm has opportunities of earnings a rate of return excess of the market capitalization rate.
D) The firm's P/E ratio is too high.