Market to book ratios of value be misleading
In what circumstances would market to book ratios of value be misleading?
Expert
a) The ratio of Market to Book is quite useful, however it is just a rough estimation of liquidation and going concern values comparison. It is mainly due to the Market to Book ratio makes use of accounting-based book values. The real liquidation value of an organisation is likely to be little different than the value of book.
b) For example, the firm’s assets could be worth more or less than the value at which these assets are currently accepted on the company's balance sheet. Besides that the current market price of the bonds of the company and stock might also be different from the accounting value.
Explain in brief Crash Metrics.
What are the difficulties GARCH contained?
Like an investor, what factors would you regard as before investing in the emerging stock market of a developing country? In emerging market stocks an investor needs to be concerned with the depth of the market and
How could MBAs cope?
Explain the way to load Bitmap at Dialog background within an MFC application?
When you add random numbers and get normal, what occurs when you multiply them?
What is a Coherent Risk Measure?
Explain total assets equal the sum of total liabilities and equity.
How is Gamma hedging more precise form of hedging that theoretically eliminates?
Explain the argued of Eugene Fama regarding excess return.
18,76,764
1935844 Asked
3,689
Active Tutors
1445368
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!