True Blue Transport has a current stock price of $27.For the past year,the company had net income of $2,187,400,total equity of $13,892,300,sales of $26,511,000,and 2.5 million shares outstanding.What is the market-to-book ratio?
A)3.54
B)3.81
C)3.99
D)4.27
E)4.86

Question

Quizplus · Accepted Answer

Book value per share = $13,892,300/2,500,000 = $5.55692; Market-to-book = $27/$5.55692 = 4.86

True Blue Transport Has a Current Stock Price of $27