39. How many statements below are true? (1). A combination of a low price/book value ratio and a high expected return on equity suggests that a stock is undervalued. (II). A firm with a high expected growth rate will sell for a higher price/sales ratio than a firm with a lower expected growth rate. (III). A portfolio of stocks with low price/sales ratios is likely to contain a significant number of firms in businesses with low profit margins. (IV). In the Gordon Growth model, firms with higher dividend payout ratios will have higher price/book value ratios. A. 1 B.2 C. 3 D. 4