Answer:
The Market-to-Book ratio is 7.27
Explanation:
Market to book value is the ratio of current market value of company's equity to book value of company's equity. it shows how market value the each $1 book value of share.
Total Equity at book value = $129,600
Outstanding shares = 30,000 shares
Market price = $31.40
Market value of outstanding shares = 30,000 x 31.40 = $942,000
Market to book ratio = Market capitalization / Total book value
Market to book ratio = $942,000 / 129,600
Market to book ratio = 7.27 times
