Bitters Co.'s net income is $12,000,the market value is $150,000,and the book value of stockholders' equity is $80,000.What is the Price-to-Book Ratio for Bitters Co.?

Name: Bitters Co.'s net income is $12,000,the market value is $150,000,and the book value of stockholders' equity is $80,000.What is the Price-to-Book Ratio for Bitters Co.?
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Question

Quizplus · Accepted Answer

Price-to-Book Ratio = Market value of equity / Book value of equity
= 150,000 / 80,000
= 1.88 
Thus, option C) is the correct answer.