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?

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