Question
(Market-to-book ratios) Consider three companies Twitter, a technology company in California, USA, Somerset Savings Bank (SLA), a saving and loan bank in New Jersey, USA,
(Market-to-book ratios) Consider three companies Twitter, a technology company in California, USA, Somerset Savings Bank (SLA), a saving and loan bank in New Jersey, USA, Bank of Beirut, a saving and loan bank in Lebanon).
a)Provide a plausible range for the market-to-book ratio of each of three companies.
b)Based on your answers in (a), explain in no more than 12 lines on the quality of the economic image given by each of three companies financial statements. Specifically, is it enough to rely on the financial statements to understand each companys economic performance, or should additional information be sought.
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