In what stage of growth would a firm most likely NOT pay dividends?

A. maturity stage.

b. Initial growth stage.

C. contraction stage

D. Declining stage.

Which of the following is a disadvantage of using the price-to-book value (PBV) ratio?

a. Book values are affected by accounting standards, which may vary across firms and

countries.

b. Book value may not mean much for manufacturing firms with significant fixed costs

C. Firms with negative earnings cannot be evaluated with the PBV ratios

d. Firms with negative cashflow can be evaluted with the PBV ratios