Two ratios that make use of the market price of the firms common stock in addition to

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Two ratios that make use of the market price of the firm’s common stock in addition to its financial statements are the ratios of market to book value and price to earnings. Analysts sometimes take low values for these ratios as a sign that the stock is underpriced. However, both ratios may be better interpreted as signals of growth prospects. p-696

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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