ABD common stock is selling for $36.08 a share. The company has earnings per share of $.34 and a book value per share of $12.19. What is the market-to-book ratio?

5.92

8.71

3.97

7.69

2.96

The market-to-book ratio is: $2.96

Explanation:

The market-to-book ratio compares the market value of an organization with its book value. The formula to calculate market-to-book ratio is equal to the market price per share divided by the book value per share. So,

Market-to-book ratio = $36.08/$12.19

Market-to-book ratio = $2.96