Parker's Meats has total assets of $411,900,a price-earnings ratio of 8.4,a debt-equity ratio of .65,and earnings per share of $1.22.What is the market to book ratio if there are 45,000 shares of stock outstanding?
A)1.85 times
B).79 times
C)2.24 times
D)5.46 times
E)2.80 times

Question

Quizplus · Accepted Answer

Equity multiplier = 1 + .65 = 1.65Total equity = Total assets/Equity multiplier = $411,900/1.65 = $249,636.36Market to book ratio = (8.4 × $1.22)/($249,636.36/45,000)= 1.85 times

Parker's Meats Has Total Assets of $411,900,a Price-Earnings Ratio of 8.4,a