Quincy Martin Manufacturing stock has a market value of $48 a share. If the book value is $40 a share, the firm's market-to-book ratio is:

Question

Quizplus · Accepted Answer

The market-to-book ratio is calculated by dividing the market value per share by book value per share, so Market-to-Book Ratio = Market Value per Share / Book Value per Share. Given that the market value per share is $48 and the book value per share is $40, the market-to-book ratio is 48/40 = 1.2. Therefore, the correct answer is C) 1.2.

Quincy Martin Manufacturing Stock Has a Market Value of $48