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The price-to-book ratio of a company can be shown to be a function of future expected return on common stockholders' equity and risk of equity

The price-to-book ratio of a company can be shown to be a function of future expected return on common stockholders' equity and risk of equity capital.

True False

A stock that has a high price-to-earnings ratio and a high price-to-book ratio is an indicator of a stock that is definitely overvalued.

True False

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