Question
Market-to-Book Ratios The most recently reported Common Equity and Market Value for the following automotive companies are shown below. Use this information to calculate the
Market-to-Book Ratios
The most recently reported Common Equity and Market Value for the following automotive companies are shown below. Use this information to calculate the Market-to-Book ratios for each company. (Note: This data has been updated and is different than on MT1.)
| Company (Stock Symbol) | Common Equity ($M) | Market Value ( $M) | Market to Book |
| Tesla (TSLA) | $22,225 | $557,645 |
|
| Ford (F) | $33,828 | $54,600 |
|
| General Motors (GM) | $45,030 | $79,408 |
|
| Toyota (TM) | $204,615 | $228,203 |
|
Source: finance.yahoo.com, 5/21/2021
Which of the following statements is incorrect?
Group of answer choices
Fords market value is 1.6x more than its book value
Tesla the highest M/B ratio by far
Toyotas M/B ratio is 1.1, the lowest of the four companies
Tesla has the highest market value but the lowest book value
General Motors market-to-book ratio is lower than Fords
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1st Edition
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