A stock has 94 million shares outstanding,with a current share price of $3.53 per share.If the firm's book value of equity is $120 million,what is its market-to-book ratio?

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Quizplus · Accepted Answer

The market-to-book ratio is calculated by dividing the market value of equity by the book value of equity. The market value of equity is equal to the number of shares outstanding multiplied by the current share price. Therefore, the market value of equity is 94 million shares * $3.53 per share = $331.82 million. The market-to-book ratio is then $331.82 million / $120 million = 2.77.

A Stock Has 94 Million Shares Outstanding,with a Current Share