A firm has 21,000 shares of stock outstanding,sales of $927,000,a profit margin of 4.8 percent,a price-earnings ratio of 6.2,and a book value per share of $5.80.What is the market-to-book ratio?
A)1.67 times
B)3.98 times
C)4.27 times
D)3.29 times
E)2.26 times

Question

Quizplus · Accepted Answer

Earnings per share = ($927,000 × 0.048)/ 21,000 = $2.119 Price per share = $2.119 × 6.2 = $13.137 Market-to-book ratio = $13.137 / $5.80 = 2.26 times

A Firm Has 21,000 Shares of Stock Outstanding,sales of $927,000,a