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If the ratio of price to book exceeds 1 . 0 , the firm's assets are understatedthe stock is overvaluedthe accounting value of the firm

If the ratio of price to book exceeds

1.0,

the firm's assets are understatedthe stock is overvaluedthe accounting value of the firm is greater

than the

market value of the firmthe price of the stock is greater than the accounting value of

the firm

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