A firm has 160,000 shares of stock outstanding, sales of $1.94 million, net income of $126,400, a price-earnings ratio of 18.7, and a book value per share of $9.12. What is the market-to-book ratio?
A)1.62
B)1.84
C)2.23
D)2.45
E)2.57

Question

Quizplus · Accepted Answer

Earnings per share = $126,400/160,000 = $0.79Price per share = $0.79 F1F1F1S1F1F1F10 18.7 = $14.773Market-to-book ratio = $14.773/$9.12 = 1.62

A Firm Has 160,000 Shares of Stock Outstanding, Sales of $1.94