1) What does it mean when a firm tread at a price to book ratio = 1 ? Does that mean that BV and market value are equal? Explain?
2) What does it mean when a firm tread at a price to book ratio greater than 1? Does that mean that market value exceeds book value? Explain?
3) What does it mean when a firm tread at a price to book ratio less than 1? Does that mean that market value is less than book value? Explain?