One advantage to using the price/book value (P/B) ratio over using the price/earnings (P/E) ratio is that P/B can be used when:
A) earnings or cash flows are negative.
B) stock markets are volatile.
C) the firm is in a slow growth phase.
Answer: A
Business Analyst MCQ
Equity Valuation
One advantage to using the price/book value (P/B) ratio over using the price/earnings (P/E) ratio is that P/B can be used when:
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