A Major Reason Why Many Companies Have the High Valuation

Multiple Choice

A major reason why many companies have the high valuation ratios (ratio of stock market value to balance sheet net asset value) is:

A) Stock market irrationality which results in some companies becoming overvalued
B) The undervaluation of intangible resources on companies' balance sheets
C) Stock market doubts over the valuation of financial assets by companies and their auditors
D) The rise of intellectual property valuation as a result of recent patent litigation.