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sugess me wht v understand if PBRATION OF ANY CO. IS 1

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15 December 2009 wht v meant by if price to book value ratio of any co. is 1 or less than 1.....
in my opinion ...if this co. want go into liquidation in todays date shareholders will get there money with no loss if they buy shres at book value........ assumption --- at time of liquidation all assets of co. realise at book value and all liabilites seettle at book valueee............. m i right???????
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CA SURENDRA KUMAR RAKHECHA

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CA SURENDRA KUMAR RAKHECHA (Expert)
15 December 2009 yes.

But your assumption may not be correct. When business is closed; current assets if any; specially debtors are hardly realisable.

Stock shown in books also may not realise the same value.
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