A firm's market-to-book ratio might be greater than 1. 0 due to accounting reasons. An example of an accounting reason that would cause the market-to-book ratio to increase is?

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A firm's market-to-book ratio might be greater than 1. 0 due to accounting reasons. An example of an accounting reason that would cause the market-to-book ratio to increase is:-

off-balance-sheet assets arising from investments in successful research and development programs that are expensed according to conservative accounting principles.

CA Firm's VB ratio can be greater than 1. This is due to off-balance sheet assets derived from investments in successful research and development programs that are expensed under conservative accounting principles.

Market -to-book ratio (also known as the price-to-book ratio) is a financial metric used to assess a company's current market value relative to its book value. Market value is the current share price of all outstanding shares (that is, the price at which the market thinks the company is worth).

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