Book to Market Ratio
The following information relates to two companies, designated Company A and Company B. One of the companies is a traditional steel manufacturer. The other is a successful Internet retailer. Using the following information, identify which is which, and explain your answer.
|
Reported |
|
Total Market Value |
|
Stockholders’ Equity |
|
of Equity |
|
Company A |
$10,000 |
$75,000 |
|
Company B |
10,000 |
8,000 |