In its 2018 fiscal year,the data storage company,NetApp Inc.,reported that it had 267.9 million shares of common stock outstanding,trading at a price of about $68 per share.On the firm's balance sheet,the value of common stock equity was reported as $2.067 billion.NetApp's market/book ratio was ________.

Question

Quizplus · Accepted Answer

The market/book ratio is calculated by dividing the market value per share by the book value per share. The market value is $68 per share, and the book value per share is $2.067 billion divided by 267.9 million shares, which is approximately $7.72 per share. Thus, the market/book ratio is $68 / $7.72 ≈ 8.8.

In Its 2018 Fiscal Year,the Data Storage Company,NetApp Inc