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The average firm in each industry must have an m/b ratio that is equal to 1.0. true or false? a. true b. false

The average firm in each industry must have an m/b ratio that is equal to 1.0. true or false? a. true b. false
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The average firm in each industry must have an m/b ratio that is equal to 1.0. true or false?

a. true
b. false

User Morteza Adi
by
7.9k points

1 Answer

6 votes
The M/B ratio is the ratio between the market value and the book value. It is one indicator used to measure the worth
It is false that the average firm in each industry must have an M/B ratio that is equal to 1.0
User Ssank
by
7.9k points
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