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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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