True Blue Transport has a current stock price of $27. For the past year, the com
ID: 2651367 • Letter: T
Question
True Blue Transport has a current stock price of $27. For the past year, the company had net income of $2,187,400, total equity of $13,892,300, sales of $26,511,000, and 2.5 million shares outstanding. What is the market-to-book ratio?True Blue Transport has a current stock price of $27. For the past year, the company had net income of $2,187,400, total equity of $13,892,300, sales of $26,511,000, and 2.5 million shares outstanding. What is the market-to-book ratio?
True Blue Transport has a current stock price of $27. For the past year, the company had net income of $2,187,400, total equity of $13,892,300, sales of $26,511,000, and 2.5 million shares outstanding. What is the market-to-book ratio?
Explanation / Answer
Answer:
Calculation of market-to-book ratio:
Market-to-book ratio = Total Market value of Shares / Total Book value of Shares
Total Market value of Shares = Number of shares * Market Price per share
=2500000 Shares * $27 = $67,500,000
Total Book value of Shares = Total Equity = $13,892,300
Hence , Market-to-book ratio = $67,500,000 / $13,892,300
= 4.8588
Or 485.88%
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.