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 $7.92.What is the market-to-book ratio?
A)1.87
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 × 18.7 = $14.773Market-to-book ratio = $14.773/$7.92 = 1.87

A Firm Has 160,000 Shares of Stock Outstanding,sales of $1