Use the table for the question(s)below.

-Refer to the balance sheet above.If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then Luther's market-to-book ratio would be closest to:
A)0.39
B)0.76
C)1.29
D)2.57

Question

Use the table for the question(s)below.
  
-Refer to the balance sheet above.If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then Luther's market-to-book ratio would be closest to:
A)0.39 
B)0.76 
C)1.29 
D)2.57

Quizplus · Accepted Answer

Market-to-book ratio = Market value of equity / Book value of equity= (10.2 million shares * $16 per share) / $12.8 million= $163.2 million / $12.8 million= 1.29

Use the Table for the Question(s)below