请解释一下题目

问题如下：

Question When analyzing a company that prepares its financial statements according to US GAAP, calculating the ratio of price to tangible book value instead of the ratio of price to book value is most appropriate if the company:

选项：

A.grows primarily through acquisitions.

B.develops its patents and processes internally.

C.invests a substantial amount in new capital assets.

解释：

A is correct. A company that grows primarily through acquisitions will have more goodwill and other intangible assets on its balance sheet than a company with fewer acquisitions or that has grown internally. To provide for comparisons with companies that do not follow such a growth strategy, an analyst would remove all intangibles and focus on tangible book value.

B is incorrect. If the company has grown internally, it will not have many intangible assets, so book value and tangible book value would be very similar. Therefore, the adjusted ratio is not necessary.

C is incorrect. The investment in new capital assets would increase both the book value and the tangible book value—the adjustment would not make any difference.