Samurai company has 8 500 000 shares issued to shareholders and the shares sell for $1.98 per share,at the end of the year.Total shareholders' equity is equal to $9 300 000.What is market-to-book ratio?

Question

Quizplus · Accepted Answer

Market-to-book ratio = Total market value of equity / Total book value of equity

Total market value of equity = Number of shares * Share price = 8,500,000 * $1.98 = $16,830,000

Total book value of equity = Total shareholders' equity = $9,300,000

Market-to-book ratio = $16,830,000 / $9,300,000 = 1.81

Therefore, the best choice is C.

Samurai Company Has 8 500 000 Shares Issued to Shareholders