10

A firm had a market value added, MVA, of $3.5 million dollars at the end of 2015. The firm reported retained earnings of $1.1 million and total paid-in-capital of $1.0 million at the end of 2015. The firm has not repurchased any shares of its common stock. What is the firm's book-to-market ratio?

Select one:

a. 0.67

b. 1.30

c. 1.60

d. 2.67