Discuss the levered price-to-book ratios

Reference no: EM131491113

Question: 1. Levered price-to-book ratios are always higher than unlevered price-to-book ratios. Is this correct?

2. Noting the large amount of stock repurchases in 2009-2010, an equity strategist at a leading Wall Street firm predicted that earnings per share would increase and "well see a jump in P/E ratios." Does he have the correct analysis?

Reference no: EM131491113

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