Use the table for the question(s) below.
Consider the following balance sheet:

-Market-to-book-ratio is also called the ________.
A) price-to-debt ratio
B) price-to-book ratio
C) price-to-asset ratio
D) price-to-equity ratio

Question

Use the table for the question(s) below.
Consider the following balance sheet:
  
-Market-to-book-ratio is also called the ________.
A) price-to-debt ratio 
B) price-to-book ratio 
C) price-to-asset ratio 
D) price-to-equity ratio

Quizplus · Accepted Answer

The market-to-book ratio compares the current market value of a company to its book value (which is the value of its assets minus liabilities). Therefore, it is also known as the price-to-book ratio.

Use the Table for the Question(s) Below