Q163
The price to book value ratio tends to be close for_____________.
A.
high-tech companies
B.
banks
AnswerC.
utilities
D.
service companies
Answer: Option B
Solution
Answer: Option B
Solution:
The price to book value ratio tends to be close for banks. Price-to-book value (P/B) is the ratio of market value of a company's shares (share price) over its book value of equity. The book value of equity, in turn, is the value of a company's assets expressed on the balance sheet.