Question
Assets 2006 2005 Liabilities and Stockholders' Equity 2006 2005 Current Assets Current Liabilities Cash 62.5 58.5 Accounts payable 89.5 73.5 Accounts receivable 56.9 39.6 Notes
Assets | 2006 | 2005 | Liabilities and Stockholders' Equity | 2006 | 2005 |
Current Assets | Current Liabilities | ||||
Cash | 62.5 | 58.5 | Accounts payable | 89.5 | 73.5 |
Accounts receivable | 56.9 | 39.6 | Notes payable / short-term debt | 10.2 | 9.6 |
Inventories | 46.6 | 42.9 | Current maturities of long-term debt | 39.6 | 36.9 |
Other current assets | 4.9 | 3.0 | Other current liabilities | 6.0 | 12.0 |
Total current assets | 170.9 | 144.0 | Total current liabilities | 145.3 | 132.0 |
Long-Term Assets | Long-Term Liabilities | ||||
Land | 66.5 | 62.1 | Long-term debt | 239.4 | 168.9 |
Buildings | 110.3 | 91.5 | Capital lease obligations | ||
Equipment | 117.7 | 99.6 | |||
Less accumulated depreciation | (55.8) | (52.5) | Deferred taxes | 22.8 | 22.2 |
Net property, plant, and equipment | 238.7 | 200.7 | Other long-term liabilities |
| |
Goodwill | 60.0 | minusminus | Total long-term liabilities | 262.2 | 191.1 |
Other long-term assets | 63.0 | 42.0 | Total liabilities | 407.5 | 323.1 |
Total long-term assets | 361.7 | 242.7 | Stockholders' Equity | 125.1 | 63.6 |
Total Assets | 532.6 | 386.7 | Total liabilities and Stockholders' Equity | 532.6 | 386.7 |
Refer to the balance sheet above. If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then Luther's market-to-book ratio would be closest to:
A.
2.612.61
B.
0.650.65
C.
1.31.3
D.
1.83
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started