Market to book value links company value to accounting numbers. It is related to a variety of attributes. Complete the table below by indicating whether the value of each attribute indicates a high market to book value company or a low one. The first item is completed as an example.
|
Attribute |
Magnitude of Attribute |
Expected Company Value |
|
Asset growth |
High |
High |
|
Debt to assets |
Low |
|
|
Dividend payout |
Low |
|
|
Equity growth |
Low |
|
|
Investing cash outflow |
High |
|
|
Operating cash inflow |
Low |
|
|
Research and development expenditure |
High |
|
|
Return on assets |
Low |
|
|
Return on equity |
High |
|
|
Sales growth |
High |