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28 August, 04:38

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?

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  1. 28 August, 05:00
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    2.9598 : 1

    Explanation:

    Given:

    Selling price per share = $36.08

    Earning per share = $0.34

    Book value per share = $12.19

    Market-to-book ratio = ?

    Computation of market-to-book ratio:

    Market-to-book ratio = market value per share (selling price) / book value per share

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

    Market-to-book ratio = 2.9598
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