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Options
- A
5.63x
-
4.37x
Correct answer
- C
5.99x
- D
3.84x
Why this is the answer
P/B ratio = Market Capitalization ÷ Net Worth. Market Cap = 10 million × 35 = 350 million. Net Worth = 120 − 40 = 80 million. P/B = 350 ÷ 80 ≈ 4.37x. It measures how much investors are paying for each unit of net assets.
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