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e You Ready for Corporate Finance? - GRADED Eep 1: Assess your knowledge Topic 4 of 5: Ratio Fundamentals for Fin 1 2 3 Market

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e You Ready for Corporate Finance? - GRADED Eep 1: Assess your knowledge Topic 4 of 5: Ratio Fundamentals for Fin 1 2 3 Market value ratios are a type of financial ratio that describes what investors think about the firm and its future prospects. The Market to Book Ratio is one type of market value ratio. To calculate the Market to Book Ratio, you first need to find the Book Value per Share Ratio. If the common equity is $10,000 and 3,000 shares are outstanding with the market price being $12.50 per share, calculate the Market to Book Ratio, using the following equations. Common Equity Book Value per Share Shares Outstanding Market Pgice per Share Market to Book Ratio = Book Value per Share 5 04.05 O 5.50 O 3.75 O 3.33

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