Use the table for the question(s)below.
Consider the following balance sheet:

-If in 2012 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.
Consider the following balance sheet:
  
-If in 2012 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

Luther's Market-to-book ratio = Market value of equity / Book value of equity= (10.2 million shares * $16 per share) / (10.2 million shares * $12 per share)= 1.29

Use the Table for the Question(s)below