A High Price-To-Book Ratio May Indicate Which One of the Following

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 poorer job controlling its inventory expense than other related firms.
C) Investors may believe that this firm has opportunities for earning a rate of return in excess of the market capitalization rate.
D) All of these options.