If Market Value Added (MVA) is positive, it states that the market-to-book ratio is:

CS Executive · Corporate and Management Accounting · PYQS · December 2023
If Market Value Added (MVA) is positive, it states that the market-to-book ratio is:
(A) Zero
(B) More than one
(C) Less than one
(D) Infinity

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B), (C). Official source note: Correct option is C i.e. less than one if book to market ratio. Correct option is B i.e. more than one if market to book ratio.

Topics: Management Accounting

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic