Question
Using the following information, determine the market-to-book ratio forMontreal Computing Power Company. Balance sheet ofMontreal Computing Power Company: Cash and marketable securities 75 Accruals 100
Using the following information, determine the market-to-book ratio forMontreal Computing Power Company.
Balance sheet ofMontreal Computing Power Company:
Cash and marketable securities
75
Accruals
100
Inventory
350
Accounts payable
350
Prepaid expenses
150
Short-term debt
250
Other current assets
1,500
Other current liabilities
500
Net fixed assets
3,925
Long-term debt
2,800
Shareholders' equity
2,000
Total assets
6,000
Total liabilities and shareholders' equity
6,000
Montreal Computing Power Company has 1,000 common shares outstanding. The shares were issued 10 years ago at $4 per share and currently trade at a price of $3.
a) 0.667
b)0.933
c) 1.400
d) 1.500
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