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

-If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then Luther's market-to-book ratio would be closest to:
A) 0.39
B) 0.76
C) 1.29
D) 2.57

Question

Use the table for the question(s) below.
Consider the following balance sheet:
  
-If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then Luther's market-to-book ratio would be closest to:
A) 0.39 
B) 0.76 
C) 1.29 
D) 2.57

Quizplus · Accepted Answer

C) MTB = market cap / book value of equity = (10.2 million × 16) / 126.6 = 163.2 / 126.6 = 1.289

Use the Table for the Question(s) Below