Use the table for the question(s)below.
Consider the following balance sheet:
-If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then Luther's market-to-book ratio would be closest to:
A)0.39.
B)0.76.
C)1.29.
D)2.57.

Question

Use the table for the question(s)below.
Consider the following balance sheet:  
-If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then Luther's market-to-book ratio would be closest to:
A)0.39. 
B)0.76. 
C)1.29. 
D)2.57.

Quizplus · Accepted Answer

Luther's market-to-book ratio would be closest to 1.29. This is because the market value of Luther's shares is $16 per share * 10.2 million shares = $163.2 million, and the book value of Luther's shares is $126 million.

Use the Table for the Question(s)below