Which of the following NOT TRUE? Limited liability is an important feature of corporations. For a modern corporation, the agency problem between the shareholder and the creditor (the bondholder) is caused by the separation of ownership and the management. Using the constant-growth DCF (discounted cashflow) formula, the Price-to- Book ratio can be expressed as ROE-bx ROE BVPS r-bX ROE where BVPS is the book value per share, ROE is the return on equity, r is the capitalization rate and b is the plowback ratio. We can conclude that the Price- to-Book ratio increases as ROE increases. The ultimate financial goal of a corporation is to maximize the shareholder wealth, that is to maximize the firm's value