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Brown and CO. has total equity of $64,800. There are 15,000 shares of stock outstanding at...

Brown and CO. has total equity of $64,800. There are 15,000 shares of stock outstanding at a market price of $11.66 a share. What is the market-to-book ratio?

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Expert Solution

Market value of equity = No of shares outstanding*market price per share

= 15,000 share*$11.66 per share

Market value of equity = $174,900

- Market-to-Book Ratio = Market value of equity/Book value of equity

Market-to-Book Ratio = $174,900/$64,800

Market-to-Book Ratio = 2.70 times

jeff jeffy answered 2 years ago
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