Which of the following regarding Price/BV ratio valuation is correct A stock that sells for less than book value is undervalued. If a company's retum on equity drops, its pricelbook value ratio will generally drop more than proportionately, l. 0 , if the retum on equly drops by haf, he pricebook mite rat drop by more than haif. Other things remaining equal, a higher growth stock will have a higher price/beok value ratio than a lower grewth stock In the Constatnt Growth model, firms with higher dividend payout ratios will have higher price/book value ratios