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b . Is the company's market - to - book ratio meaningful? Is its book debt - equity ratio meaningful? Explain. ( Select all the
b Is the company's markettobook ratio meaningful? Is its book debtequity ratio meaningful? Explain. Select all the choices that apply.
A Because the book value of equity is positive in this case, the company's market debtequity ratio may be used in comparison.
B Because the book value of equity is positive in this case, the company's markettobook ratio and its book debtequity ratio are not meaningful.
C Because the book value of equity is negative in this case, the company's market debtequity ratio may be used in comparison.
D Because the book value of equity is negative in this case, the company's markettobook ratio and its book debtequity ratio are not meaningful.
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