What is the market-to-book ratio

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Reference no: EM131962689

1. If the Debt/Equity Ratio is 0.50. What is the Debt Ratio? PLEASE SHOW WORK

a. .5

b. .375

c. .6

d. 1

e. .3333

2. ABC's Balance Sheet lists Current Assets of $300, Current Liabilities of $200, Fixed Assets of $700, Long-Term Debt of $400. ABC has 200 shares outstanding. What is the market-to-book ratio (MTB) if the market price per share is $8? PLEASE SHOW YOUR WORK.

a. 4 times

b. 400 times

c. 2 times

d. 8 times

e. .25 times

3. A firm has sales of $350,000, a profit margin of 6 percent, a total asset turnover rate of 1.25, and an equity multiplier of 1.4. What is the return on equity? PLEASE SHOW YOUR WORK.

a. 10.50 percent

b. 7.5 percent

c. 7.75 percent

d. 11.11 percent

e. 5,36 percent

Reference no: EM131962689

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