P/B Ratio
In the case of inflationary time, Q will be lower than P/B ratio, conversely it will be higher than Q. During periods of very high inflation, the book value would not reflect the cost of replacing a firm's assets, since the inflated prices of its assets would not be reflected on its balance sheet.
Read more about this topic: Tobin's Q
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“Official dignity tends to increase in inverse ratio to the importance of the country in which the office is held.”
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