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Stock issued by company have higher rate of return because of...

This question belongs to Commerce Financial Management
Financial Management
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Stock issued by company have higher rate of return because of

Answer & Solution
Correct Answer: Option B
Stock issued by company have higher rate of return because of high book to market ratio. A high ratio is preferred by value managers who interpret it to mean that the company is a value stock, that is, it is trading cheaply in the market compared to its book value.
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