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11 May, 06:46

BK Trucking has total equity of $25,380 and 1,500 shares outstanding. Its stock is currently selling at $38 per share. What is the market-to-book ratio?

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  1. 11 May, 09:50
    0
    2.25 times

    Explanation:

    The computation of the market-to-book ratio is shown below:

    Market to book ratio = (Market price per share) : (book value per share)

    where,

    Market price per share = $38 per share

    And, the book value per share

    = Total equity : outstanding shares

    = $25,380 : 1,500 shares

    = $16.92

    So, the market to book ratio would be

    = $38: $16.92

    = 2.25 times
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