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Question 3 (20 points) A. Why might a firm trade at a price-to-book ratio (P/B) greater than 1.0? B. If the price-to book value per

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Question 3 (20 points) A. Why might a firm trade at a price-to-book ratio (P/B) greater than 1.0? B. If the price-to book value per share is less than one, what does that mean? C. A stock may trade below its book value for several reasons. List some of these factors D. Pick a company from Saudi Stock Market that its stocks has been traded below its book value. Name this company? Why it was traded below its book value? Are stocks trading below their book value a good bet? Explain? E. If a firm is expected to have a profit margin of 8 percent but trades at a price-to sales ratio of 25, what inferences would you make? F. Should a firm that has higher free cash flows have a higher value

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