Examveda
Examveda

Stock issued by company have lower rate of return because of

A. high market to book ratio

B. low book to market ratio

C. low market to book ratio

D. high book to market ratio

Answer: Option B

Solution(By Examveda Team)

Stock issued by company have lower rate of return because of low book to market ratio. The book-to-market ratio is used to find a company's value by comparing its book value to its market value.

This Question Belongs to Commerce >> Financial Management

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