Question

Growth stocks usually exhibit ______ price-to-book ratios and ______ price-to-earnings ratios.A. low; lowB. low; highC. high; lowD. high; high

Answer 1

B. low; high

Step-by-step explanation:

• The price book ratio is a ration used to measure the companies standing in terms of the company market value of the share as decrease in the growth stocks thus a company liquidated all of the assets and to pay off all its debts and hence an increase in earning ratio.

• As it shows how much the investor is willing to pay per the earnings.